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mogwai
Level 2

Depreciation Basis - Land Value "Market" vs. "Taxable" Value ?

What should be used for a rental property depreciation calculation for Land value?

 

"Market" vs. "Taxable" ?

 

Screenshot 2021-05-05 193046.png

3 Replies
Mike9241
Level 15

Depreciation Basis - Land Value "Market" vs. "Taxable" Value ?

none of the above. Land is rarely depreciable.  the only situation I've ever come across where it was was when it was used as a waste dump by a private company. after so much no more use.

as for splitting the cost of real property between land and buildings, it's supposed to be based on their relative values. however, many tax bills do not reflect their true value. ask a realtor in your area. 

 

 

 

mogwai
Level 2

Depreciation Basis - Land Value "Market" vs. "Taxable" Value ?

Thanks for the response. Yes, I am aware of that. I'm asking in the context of subtracting the value of the land from the purchase price of the property.

mogwai
Level 2

Depreciation Basis - Land Value "Market" vs. "Taxable" Value ?

@Mike9241 - can you help based on my clarification? Thanks

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