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Some county tax statements have a value for land and the building. Not all do this.
On those that have a value broken out, you would use the ratio percentage. So if the land was 23% of the total, then you allocate 23 of the total cost to the land.
If they don't do this, talk to a realtor or perhaps insurance agent to get an idea on the land value. If you recently bought it, look at appraisal for land value to the building.
Then document in the tax file on what you used and why.
For personal residence converted to rental property, you will need the following:
Cost or basis of the property: which is the purchase price, plus closing costs (not deducted elsewhere, like points), plus improvements made.
The TurboTax will ask for the Fair Market Value at the time of rental, as depreciation is limited to cost or FMV whichever is lower.
Also, the land value, as land cannot be depreciated.
Some county tax statements have a value for land and the building. Not all do this.
On those that have a value broken out, you would use the ratio percentage. So if the land was 23% of the total, then you allocate 23 of the total cost to the land.
If they don't do this, talk to a realtor or perhaps insurance agent to get an idea on the land value. If you recently bought it, look at appraisal for land value to the building.
Then document in the tax file on what you used and why.
For personal residence converted to rental property, you will need the following:
Cost or basis of the property: which is the purchase price, plus closing costs (not deducted elsewhere, like points), plus improvements made.
The TurboTax will ask for the Fair Market Value at the time of rental, as depreciation is limited to cost or FMV whichever is lower.
Also, the land value, as land cannot be depreciated.
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