Bought property in Dec..calculate depreciation with old statement

2 Replies


I purchased a property in December for around 800,000. Property tax true-ups were NOT included during the escrow process because in Los Angeles, tax statements aren't available in December. A few months ago, the county did send me a copy of the old tax statement that I should pay in the meantime because for some reason they haven't been able to generate a new statement yet.

When calculating depreciation, should I use improvement to total value shown in this old tax statement? The ratio is showing around 250K for improvements and 350K for land. So if I were to follow this method, my basis for depreciation would be $333K (800K x 250K / 600K). Is this the correct way to calculate?


Originally posted by @Eamonn McElroy :

@Tony Kim

That is one of the acceptable ways to split the basis yes.

Don't forget to examine your HUD/closing docs. You'll likely have some closing costs that need to be added to basis.

 Thanks Eamonn.