Seeking advice on depreciation / discrepancy on two appraisals

[Yun Han]

I am working on calculating the depreciation basis for my rental property, and I am currently analyzing two appraisals. The first appraisal was conducted in 2020 when I purchased the property, while the second appraisal was done in 2022 for the purpose of removing PMI.

(I am assuming the "opinion of site value" equals the land value. Please correct me if I am wrong..) 

According to the 2020 appraisal, the land is valued at $530,000 while it is valued at $410,000 in the 2022 appraisal. It seems little odd that the land appraised in 2020 is too high, making the land value 80% of the purchase price. This is resulting the depreciable basis of this property to be too small... Using the current calculation method, the annual depreciation would only be $4,000 per year ($125k/30 years).

Even with the increased property value in 2022, the land is valued less than 2020's. This raises concerns regarding the accuracy of the land value appraisal in 2020.

Given these circumstances, I am uncertain whether it is still appropriate to use the 2020 appraisal numbers as the depreciable basis. If someone can provide insights/advice, I would greatly appreciate it... Thanks!

(This property is in Los Angeles area, specifically Torrance).