How do you calculate the depreciable basis of a property when you bought land and built a house? The property tax form shows $0 as building value since I just built it.

[allisonheck]

I entered all of the details from the HUD for the land, and the fees to build the house, but Turbo Tax is aggregating these expenses to the "Land" line and showing the Building depreciable basis as $0. Is there another way to enter new  construction?

[ColeenD3]

It sounds like you are working backwards. The land is only incidental to the house. Did you finish building the house? You have to total your building costs to arrive at the amount of the house. This only matters if it is going to be a rental property.

 If this is to be your own home, so long as the home becomes your main home or second home on the day it's ready for occupancy, you can deduct all the interest you paid on the construction loan within 24 months before the home was complete.

[Carl]

In the assets/depreciation section where you enter the property:

COST = What you paid  in total, which is the cost of the land and the cost of the structure.

COST OF LAND = What you paid for, or are allocating to the land.

The program "not you", will do the math to determine the value of the structure that is depreciated over the next 27.5 years.