Tax Write Off Questions

[Austin Paulenske]

Hey guys,

This will be the first year I am writing off an investment property on my taxes and I'm having a hard time determining what my Assessed Value Ratio % and my Marginal Tax Rate are for tax season this year. 

1. Is the value ratio based on what I paid vs the appraisal or market value vs the appraisal?
2. Is my marginal rate based on rental property income from cashflow or my overall taxable income? 

Any input is appreciated, See snapshot below!

[Dave G.]

@Austin Paulenske I have never heard of assessed value ratio. If this is for calculating annual depreciation, my CPA uses my HUD statement from closing to determine the cost basis of the property, including a decrement for the value of the land since that is not depreciable. Then that value is divided by 27.5 to calculate the annual depreciation value. Not sure this is helpful to you at all.

I did my own taxes for years until I bought my first rental. With that, Turbo Tax didn't cut it for me anymore and I found a CPA to do them and believe the expense of a professional is well-worth it, especially as my portfolio grew.