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October 18, 2022
Question

I bought a rental property for more than it is appraised for but was within fair market value. What do I put as improvement value? Purchase price - land value? or what?

  • October 18, 2022
  • 2 replies
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2 replies

Employee
October 18, 2022

Your depreciable basis is the cost of the structure (i.e., what you paid for it).

Carl11_2
Employee
October 18, 2022

Your cost basis for depreciation will be what you actually paid for it.