Real Estate Depreciation: Finding value of land vs structure

[taxpayer252342]

I've looked at my real estate tax bill, Zillow, Redfin, and my city's Assessing department. I'm in Massachusetts. This must be a common question, but none of the advice I've found suggests anything but the above - does anyone have other ideas?

[PattiF · Accepted solution]

From bizfluent:

"When accounting for a land and building purchase, a good rule of thumb to use is the 20/80 rule. The building is the major asset, representing approximately 80% of the purchase price. The land is the minor asset, representing approximately 20% of the purchase price."

Other sources have suggested this percentage.

Use your judgment. If the land size is small in comparison to the structure, you may want to use 15%.

[taxpayer252342]

Thanks! If the IRS saw how I maintain my lawn, they might argue the land is worth even less 🙂 

But if nobody has a Massachusetts-specific idea, I'm glad to have something to fall back on (I'll mark this best answer after a few days if so)