How to determine land value in Arizona?

[rlgorman2]

In order to calculate depreciation for a rental property, I need to enter the value of the land since the land does not depreciate. However, I can not find the assessed value of the land on the property tax statement as I can for properties in other states.

Any AZ landlords or other knowledgeable people able to point me to where I could find this info?

[Vanessa A]

You can contact the county assessors office.  They will have a breakdown of your land value and improvement values. 

[jhwgw]

I am entering information for the Home Office Depreciation.

I purchased a home for $809,000 in 2022.

The Tax Assessor's Market Value is $413,300 total.   

20% of their valuation is for the 'land' of $82,660 and 80% of their valuation is for the home of $330,640, for these to equal the $413,300.

How are any of these numbers entered into TT calculations.  TT is asking for the cost of the home and the cost of the land?  Thanks for any help you can provide.   

[TeresaM]

It is asking this because land is not depreciated but buildings can be depreciated. Part of the home office deduction is the depreciation for that portion of the home based on the value of the building but not the land. 

It is common for the land to be considered 20% of the value of the total property although there are sometimes exceptions.  You just paid $809,000 for the property, in 2022, so a case can be made to take 20% of the total price paid for the value of the land and take 80% of the total price paid for the value of the building on the property. 

[Carl]

@jhwgw 

The tax values are used *only* to determine percentages. Nothing else. You stated the property tax bill indicates 20% of the tax value is for land and the remaining 80% is for the structure. Since your cost basis is $809,000, math indicates 20% of that is $161,800.

So in the cost box you'll enter $809,000 and in the cost of land box you'll enter $161,800. From there the program (not you) will do the math and assign a value of $647,200 to the structure, and depreciation will be based on that value for the structure. The actual depreciation you're allowed will be further reduced based on the percentage of floor space the home office occupies, date placed in service as a home office, and a few other things.