Tax Bill Land Value vs TT calculated land value?

Forum|Forum|5 years ago
March 17, 2021
1 reply
10 views

I have exact numbers for land value and improvement value from my property tax bill.

this is different than what was imported from TT 2019. TT recommends that I do not update this section.

Should I use the imported numbers or the numbers from my property tax bill? Or the numbers that TT imported from the previous year?

Also- what is business %?

Carl

Level 11

Once the cost basis of the structure/land has been established it will never change for so long as the property remains in service. You will never change the cost basis for that asset, which was established in 2019, for any reason. Not ever. There are no exceptions.

If you go changing things, that will seriously skew the depreciation over the years, and in time you "will" be audited. Such an audit usually occurs for the tax year you sell the property, and could easily cost you more than any gain you may have realized on the sale.

freeradicalisaAuthor

Level 3

thank you i wont change a thing!

Carl

Level 11

Glad to help clarify things for you.

The TTX program only uses the information from your tax bill for the sole and only purpose of determining what percentage of your "actual" purchase price, gets allocated to the land. No other purpose for the tax bill on that front.

Folks get confused because the valuations on the next tax year's tax bill may be different - sometimes by a rather large percentage too. But it doesn't matter. Your 2019 tax bill will "always" be available at the tax assessor's office until the end of civilization as we know it, should the need ever arise for you to "prove" how you arrived at the percentage you used.