I've been renting my condo for awhile and I didn't depreciate it.
How do I calculate the cost of the structure vs. the land? If I look at the condo property taxes information from the year I bought it (2014) - I see the land was 20% of the structure. In 2020 the land is 37% of the cost of the structure. Do I use the percentage from the year I bought it, the current year, the year I converted it into a rental?
I've learned I should do straight-line depreciation on this number that I come up with above. Where do I enter this in turbo tax by the way? I haven't seen a clear path forward here.
Thank you!
property taxes do not necessarily represent the relative Fair Market values of Land and Building.
According to [Reg. §1.168(i)-4(b)] when a personal asset is converted to business or income-producing use, the basis or investment for depreciation is the lower of the adjusted basis on the date of the conversion or the fair market value (FMV) of the property at the time of conversion. talk to some realtors in your area.