The Tax Assessor will have the break down value for both the land and buildings which is how they determine the real estate tax assessment for each land owner. This is located on the real estate property tax bills or a call to your local courthouse will provide you with this information.
Once you have the information you can use the percentage for each against your purchase of the rental property.
Example: land plus building = total assessment. Use the percentages below against the purchase price to arrive at the cost basis for both land and building.
The Tax Assessor will have the break down value for both the land and buildings which is how they determine the real estate tax assessment for each land owner. This is located on the real estate property tax bills or a call to your local courthouse will provide you with this information.
Once you have the information you can use the percentage for each against your purchase of the rental property.
Example: land plus building = total assessment. Use the percentages below against the purchase price to arrive at the cost basis for both land and building.
You are amazing! I read somewhere that there is a difference between depreciation for residential (depreciate over 27.5 years) and commercial rentals (depreciate over 39 years). Is this correct?
Lastly, when I look up the property values on the assessors page, it has an appraised value and an assessed value. There is a large difference between the 2 options for land. Which do I use?
Also, the value of the land has gone both up and down over the years, do I just base the value off the year we started using it as a rental? Or will I have to change it each year?
Once a value is established it is not changed on your tax records, it should be the value used when the rental was placed in service. Use the assessed value.