Change in Rental Property Depreciation land allocation

Forum|Forum|7 years ago
June 5, 2019
1 reply
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To obtain my land vs. building deprecation percentage when I first stated renting my condo, I used my property tax allocation. I have recently been reassessed and this percentage has changed from 17.5% land to 21% land allocation. I see that I can change these numbers in my asset allocation screen for the rental property by recalculating the portion of cost that applies to land. Should I update these figures to account for the new allocation after several years of using the prior percentage? Does the IRS want me to constantly update this number or alternatively, would changing this number after several years trigger an audit?

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Best answer by MinhT1

If you have allocated a portion of your property value to land by using the land /building percentages. you should keep that allocation throughout the life of your property.

Land values change over time and may affect the percentages, but you should use the original cost basis allocation.

M

MinhT1Answer

If you have allocated a portion of your property value to land by using the land /building percentages. you should keep that allocation throughout the life of your property.

Land values change over time and may affect the percentages, but you should use the original cost basis allocation.

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