What tax document do I need?

3 Replies

Regarding depreciation on a rental property, I know that depreciation deductions are spread out over the "useful life" of a property. The IRS allows an owner to depreciate the value of the home over a 27.5 year period. Depreciation is calculated with this formula below:

Cost of the Building- Value of the Land = Building Value

Building Value / 27.5 = Yearly allowable depreciation deduction

My question is will I find the cost of the building and the value of the land on my property tax bill? If not, where can I find it?

Originally posted by @Kim Livingstone :

Regarding depreciation on a rental property, I know that depreciation deductions are spread out over the “useful life” of a property. The IRS allows an owner to depreciate the value of the home over a 27.5 year period. Depreciation is calculated with this formula below:

Cost of the Building- Value of the Land = Building Value

Building Value / 27.5 = Yearly allowable depreciation deduction

My question is will I find the cost of the building and the value of the land on my property tax bill? If not, where can I find it?

Just answered the same question. 

https://www.biggerpockets.com/forums/51-tax-legal-...

Originally posted by @Kim Livingstone :

Regarding depreciation on a rental property, I know that depreciation deductions are spread out over the “useful life” of a property. The IRS allows an owner to depreciate the value of the home over a 27.5 year period. Depreciation is calculated with this formula below:

Cost of the Building- Value of the Land = Building Value

Building Value / 27.5 = Yearly allowable depreciation deduction

My question is will I find the cost of the building and the value of the land on my property tax bill? If not, where can I find it?

Let your tax pro figure it out. 

This can be a huge strategy point in your tax planing. 

You can use assessor allocation %. You can also use one of several other ways. 

It may impact your new 20% QBI. 

It may impact your plan for later if you're planning to sell shorty. 

There is a lot of thought that can go into the allocation setup