scphil21
Returning Member

Investors & landlords

Thanks Carl.  When calculating the basis, do I make the prior depreciation/improvements adjustments before or after accounting for the land portion of the cost? 

ie, do I add up the actual cost, then take the percentage of structure value THEN do the adjustments OR

I take the actual cost, do the adjustments, THEN adjust for structure value?

I think it is the first one but want to be sure.