Question

Rental Property depreciation

Forum|Forum|4 years ago
April 12, 2022
1 reply
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While calculating depreciation on the Rental property, I entered original cost/ purchase price, but under Land Cost , do we enter the land cost for the time of the purchase (2005), if yes, where to find that info.

Or we enter the land price from current evaluation?

Thanks for your answer

M

Mike9241

it sounds like you converted non-rental property to a rental. the rule for property converted to rental is you enter total cost or FMV whichever is lower at the time it was converted. you would use the same concept for the land. how do you get it? you may have to get a realtor to give you an estimate. in some, but not all cases the value would be reflected on the property tax bill. there is no absolutely correct method.

if it was always a rental, then cost is used.