Property Value Breakdown - Land v Building

[Mark Grozen-Smith]

Hey BiggerPocketsers (ya we really need a term for this community 😂)

My teammates in insurance/accounting and my CPA are frequently asking me how much each property in our portfolio is worth with a breakdown of land vs building value. Do you have any idea how that breakdown is typically done? The appraisals are where I would expect, but none of our appraisals do that.

Thanks!
Mark

[Mark Grozen-Smith]

Oh one caveat for anyone reading - the cost seg study gives you huge write off earlier. That is great if you have more income you could write off in those years, however if you already have a lot of writeoffs and your deductible income is already covered, then a cost seg study wouldn't help you. Concrete example, if you are not a "real estate professional" by taxation standards, then you can't write off personal income above $150k. If this is your situation, you should use up your current writeoffs for the first few years, then when those get close to being used up, a cost seg study could be worth it at that point.