I converted my residence into rental use, so I need to calculate cost basis. My closing document do not show land value. My plan is to pull the land and improvement value from the appraisal district's website to calculate the percentage of land value. Then take the land value out from the purchase price to calculate cost basis. My question is which year of appraisal value should I pull: the year that the property was purchased, or the year that the property is converted into rental use? I noticed that the land value hasn't changed at all on the appraisal district website over the years but the improvement value has increase a lot. That means if I'm allowed to use the more recent data, I could get a higher depreciation (bc the percent of land value in property value would be lower).
The other question is IRS says "The two most common methods for dividing an expense are (1) the number of rooms in your home, and (2) the square footage of your home." What's the definition of rooms? It seems normally people refer to bedrooms. But some posts also mention about living room, dining room, bathroom, etc. should also be considered as rooms.
