Are there different ways to calculate the cost basis for a rental property in Los Angeles, CA? (The only way suggested here is to use values on property tax bill)

This home is in Los Angeles, CA. I am wondering if there are legitimate ways to justify the the land value is less that what is specified on the property tax statement, or make a case that the building is actually worth more that what the property tax office says it is.

316

Level 15

Apr 7, 2023 10:35:18 PM

sure. get a formal appraisal. you could get an informal appraisal or what you believe to be correct but that leaves you more vulnerable to potential penalties should the IRS challenge the allocation. it has its own real estate valuation experts. what can't be answered is whether the iRS will ever challenge whatever is used.

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Are there different ways to calculate the cost basis for a rental property in Los Angeles, CA? (The only way suggested here is to use values on property tax bill)