The Landlord Protection Agency  
Main Menu, Landlord Protection Agency homepage Membership With The Landlord Protection Agency Free Landlord Services Member Services  

DEPRECIATION SCHEDULES ---LAND VS STRUCTURE - Landlord Forum thread 358997








Free Landlord Newsletter





Free
Pre-screening
Prospect Card





FREE BONUS Forms Disk for
2 -5 year LPA Members




Excuses!

DEPRECIATION SCHEDULES ---LAND VS STRUCTURE by lpadave on February 1, 2019 @16:10

                              
What are most of you using for land value vs structure value for setting up depreciation schedules for income property.

In many high land value locations, the values are way off balance ..
[ Reply ] [ Return to forum ]

Re: DEPRECIATION SCHEDULES ---LAND VS STRUCTURE by lpadave on February 1, 2019 @16:12 [ Reply ]
If you're simply using the tax assessors values
Re: DEPRECIATION SCHEDULES ---LAND VS STRUCTURE by lpadave on February 1, 2019 @16:12 [ Reply ]
If you're simply using the tax assessors values
Re: DEPRECIATION SCHEDULES ---LAND VS STRUCTURE by Garry on February 5, 2019 @20:27 [ Reply ]
Dave, sorry I haven't gotten back to you until now. I had to check some things out on my properties about values. I have 20 SFHs I rent out, with current assessed values of $50,000 - $100,000 each. The land values only on those homes were all running from 17% to 25% of the total AV fo local property tax purposes. When I looked at what I had put down over the past 35 years for land values that I could not depreciate for IRS purposes, my land values were running between 13% and 21%, with most of them in the 15-19% range. It also looked like I was using the lower percentages of land value, on the properties that have small, postage-stamp lots with large houses on them, as opposed to the ones with regular sized lots.

I believe no one needs to worry about what they are using for land value, as long as they are close to that magical 20% value, and the IRS never audits you. Obviously, small lots are worth a lot less that regular/normal sized, or large lots. But it can be the other way, too. A person could own an acre of ground, with a small, older house on it, that they rent out. In that case, the IRS may want that person to use a 50/50 split on land/building value, instead of a 20/80 split.

No matter what percentages are used, eventually, when you go to sell the rental, you will have to "recapture" all that depreciation that you took over many years. I will be going thru that with my CPA next month. I sold a house in Oct. that I had owned for 40 years. I was totally depreciated out on the building.
Re: DEPRECIATION SCHEDULES ---LAND VS STRUCTURE by Eric (MN) on February 8, 2019 @07:02 [ Reply ]
I use the tax valuations.

Check-Out
Log in

Look-up
Associations
Attorneys
Businesses
Rentals Available
Rentals Wanted
Realty Brokers
Landlord Articles
Tips & Advice
Tenant Histories

Other Areas
Q&A Forum
Free Forms
Essential Forms
Landlord Tenant Law
Join Now
Credit Reports
About Us
Site Help



Contact The LPA

© 2000-2019 The Landlord Protection Agency, Inc.

If you enjoy The LPA, Please
like us on Facebook The LPA on Facebook
Follow us on Twitter The LPA on Twitter
+1 us on Google