I do not understand the property tax values under rental property. I don't know what to put down under land value and improvement value. I can't move forward?

[KittyM · Accepted solution]

It sounds like you are setting up a new rental.  If you are, you should start by looking up your property's current "fair market value."  That's the IRS' fancy way of saying "How much is it worth today?"  I like to use Zillow.com but you can use whatever site you choose.  Your property tax statement may not be an accurate source.

After you have the value of your property, you may apply the standard 80/20 rule.  That means 80% of the property value is for the building and 20% of the property value is land.  For instance you have a rental property worth $100,000.  Of that total amount $80,000 is for the house and $20,000 is for the land.  

Improvements would be for any major upgrades you recently made to the property before you rented it, like new cabinets or flooring.

I hope this helps!

[iworkhard35]

Thank YOur u so much!