Question

Do I need to adjust depreciation basis with property tax bill?

Forum|Forum|4 years ago
January 16, 2022
1 reply
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Say I have a rental property I purchased in 2020. The property tax bill shows the improvement part is $300,000 in 2020 and I used it as the depreciation basis. However, the new property tax bill in 2021 shows the improvement part was increased to $310,000. Do I change the depreciation basis to $310,000 in 2021, or I should keep using the value when I purchased the house?

M

Mike9241

you can't change the basis based on tax bills or anything else and your original depreciable basis may be wrong if it doesn't reflect what you actually paid in 2020 less the value of the land.