What percentage is the structure worth vs land for depreciation?

[Justin Brin]

What percentage is the structure worth vs land for depreciation?

In California in the property tax bill you can see sometimes the land is 90% and the structure is 10% but the reality to rebuild the structure can sometimes cost more then the house purchase price. So what percentage ratio is best to use?

I guess even if the IRS audits you can show the structure is worth at least 90% of the purchase price.

For example if the house cost $800,000 according the the tax bill the structure is worth like 100k but definitely no one will build you a structure for 100k.

What do you think?

[Michael Plaks]

@Justin Brin

You are asking the wrong question. The correct question is - how much could you sell the land for if there was no house?

You are not buying a house for $800k. You're buying land and the house, and some part of the $800k is for the house, and the other part is for the land. Need to find out what it is.

The replacement value of the house is irrelevant. What matters is - how much of your $800k went towards the house in its current condition.