so let me know if I have this one right (sorry I'm not a cpa)
For the acquired part of the LLC the cost basis is the purchase price and the basis for depreciation is cost basis times % allocated to structure. Then the basis for depreciation is amortized over 27.5 years as if I had bought a new property (which I have, duh). This part is easy.
(cost - value of land)/27.5
For the part of the LLC that was mine to begin with, the cost basis is my original purchase price plus my portion of the cost of improvements minus my portion of any depreciation taken since inception. And my basis for depreciation is the original basis for depreciation minus depreciation taken during life of llc times my per rata ownership. I will continue taking my per rata amount of this for 27.5-life of llc years.
((original cost - value of land) + cost of improvements - all depreciation taken during life of LLC) * my original percent ownership taken every year for 27.5-life of llc more years.
This is in the most basic case. I understand there could be things which complicate it but on the most basic level is this how I should think of it?
