Rental Property

Forum|Forum|5 years ago
March 14, 2021
3 replies
35 views

Good Morning

Well here it is, havent done rental property in a while. Depreciating a 2 flat unit building

Client doesn't know what the land cost is, on the closing statement it shows the combined cost.

How do you determined what the land cost is? Is there a chart or formula to calulate the land cost?

Thanking you in advance.

B Green

ProSeries Basic

This topic has been closed for replies.

Best answer by sjrcpa

The appraisal from when they bought it will break out land and building.

Or fall back on the real estate tax assessment.

sjrcpaAnswer

Level 15

The appraisal from when they bought it will break out land and building.

Or fall back on the real estate tax assessment.

The more I know the more I don’t know.

M

MCWinters

Level 3

I tend to use the real estate tax appraisal from the tax assessor office. I then use the pro-rata from the building and improvements and apply that to the new price. For example, if I have a client who just spent a million dollars on a property, and the appraisal shows about 40% is land, then I record land at 400,000.

I honestly never thought to ask for the appraisal. I will have to make it a point of doing that going forward.

sjrcpa

Level 15

The appraisal tends to give more realistic land/building allocation than the assessment, at least in my neck of the woods. Around here the assessments are skewed toward land.

The more I know the more I don’t know.

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