Thanks, that's very helpful. I looked at the link you included and one thing I want to confirm that the depreciation taken thus far should be added to the cost of the land. This was the math used in the example:
What I paid for the rebuild -------------------------------$150,000
Amount allocated to land ORIGINALLY -------------- $30,000
Amount of depreciation already taken prior to fire- $25,500
TOTAL -------------------------------------------------------$205,500 (This is the amount to be entered in the COST box)
For COST OF LAND box, you take the original cost for that and add the depreciation already taken to it. So using my numbers above the COST OF LAND box will have $55,500 entered in it
Is it correct to deduct the depreciation from the COST, but add it to the COST OF LAND? It seems doing so would just cancel out the depreciation already taken.
Once this new asset is entered, I can then adjust the numbers based on the new percentage that I own, correct?
