Hi Brittany, cost segregation studies often include an appraisal that allocates a value to land versus depreciable assets. This would typically be expressed as a dollar amount but may depend on your service provider.
If no appraisal is available there are a couple different ways to allocate value to land as opposed to the depreciable building and improvements. The simplest way to do this is probably to pull the tax appraisal from the County Appraisal District (CAD) in the county your property is located in.
This is the appraisal report that the county uses to determine the taxable value of your property. It will include a breakout of depreciable assets (often labelled "improvements") and non-depreciable land (often labelled "unimproved"). Take the ratio of land vs the total appraised value and apply that to the fair market value of your property. If no formal appraisal has been completed to determine total fair market value of your property, you can usually get a solid estimate off Zillow or Realtor.com. Alternatively, you might just provide them with the dollar value of the land as determined in the CAD report.
Hi Brittany, cost segregation studies often include an appraisal that allocates a value to land versus depreciable assets. This would typically be expressed as a dollar amount but may depend on your service provider.
If no appraisal is available there are a couple different ways to allocate value to land as opposed to the depreciable building and improvements. The simplest way to do this is probably to pull the tax appraisal from the County Appraisal District (CAD) in the county your property is located in.
This is the appraisal report that the county uses to determine the taxable value of your property. It will include a breakout of depreciable assets (often labelled "improvements") and non-depreciable land (often labelled "unimproved"). Take the ratio of land vs the total appraised value and apply that to the fair market value of your property. If no formal appraisal has been completed to determine total fair market value of your property, you can usually get a solid estimate off Zillow or Realtor.com. Alternatively, you might just provide them with the dollar value of the land as determined in the CAD report.
I hope this helps!
*sorry, used my old account in the original response, this account has my complete profile