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Updated almost 2 years ago, 01/30/2023
Real estate depreciation
I have a rental property that I would like to purchase but the seller is adding a questionable clause to the purchase agreement. The seller wants to specify how much the land and the improvements are separately for tax purposes, and assigning a lower value to the house. My problem is if the house is valued less then there is less to claim for depreciation. Can a seller make these assumptions in price?