Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Insurance
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 5 years ago on . Most recent reply

User Stats

14
Posts
4
Votes
Jimmy Wen
  • Mukilteo, WA
4
Votes |
14
Posts

Understanding Land vs. Property Values

Jimmy Wen
  • Mukilteo, WA
Posted

Hi all,

I have a newbie question for all of the experts here! The question is for my recent purchase of a duplex (residential).

How do I separate the land value from the total value of the property I just bought? There are two reasons why I asked this:

  1. I was told that the land value should be not be calculated for depreciation.
  2. Also, when selecting the dwelling insurance coverage, land is not included under this coverage.

How accurate it is to look up the property taxes from the local county assessor website?

    Most Popular Reply

    User Stats

    1,394
    Posts
    1,181
    Votes
    Allan Smith
    • Developer
    • Nashville, TN
    1,181
    Votes |
    1,394
    Posts
    Allan Smith
    • Developer
    • Nashville, TN
    Replied

    For depreciation, you should just ask your CPA how to do that. If you are doing your taxes yourself, well you should probably know how to calculate depreciation.

    to decide how much to insure it for, probably shoot for about what it would cost to replace the building in build it back. I've purchased many rental units and never really had to worry about this question that much.

    tax appraisal would be accurate if what you paid for the property is the same as a tax appraisal. You could use the land value as a rough estimate.

    Loading replies...