Depreciation benefit when land is valuable than building

[Chandra Krishnan]

Dear BP members, If one pays $200k for a property whose land value is assessed at $225k and the building at $50k, do I really get to depreciate anything? Thanks for your insight. C

[Natalie Kolodij]

You would apply the same ratio to the purchase price 

225 + 50= 275 k total 

50/275 = 18%

200k * .18=  $36,000 you can depreciate