Land value always assessed 50% house sale price

Land value always assessed 50% house sale price by Tom on February 17, 2019 @11:15

In San Mateo County, assessor always put 50% as land value. So whenever the house was sold it’s land value changed significantly, which is against IRS assumption of “land value does not change much” therefore you can not claim depreciation of land vale when calculating rental property depreciation for rental expenses purpose. Does anyone know whether I should use the house’s land value in its Very First Sale price in sales history to calculate its land value and stick with that value for calculating house depreciation? For example, in first sale of this house in 2006, the sale price was $800k, and county assesor assigned 50% of sales price as its land value($400k as land value and $400k as building value). Last year it was sold as $140k, can I put $40k as land value when calculating property depreciation? Or in Turbo tax I can set 40/140=28.5% as land value percentage onwards? I am not sure whether IRS will disagree this when they see the attached county assessor’s property tax report. Thank you in advance for any pointers!

Tom

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Re: Land value always assessed 50% house sale price by Tom on February 21, 2019 @15:38	[ Reply ]

Never mind. The book “Every landlord’s tax deduction Guide “ Explains very well those questions.

Land value always assessed 50% house sale price - Landlord Forum thread 359072