I'm working on preparing my taxes using HR Block and I have a few questions related to the Form 4562. This form is for my rental property depreciation. It says I can include the items below. • Computers and computer software • Rental real estate • Copiers and other office machines • Specialty equipment • Office furniture • Other property expected to last more than one year As for the item number 2 - Rental real estate. Is this related to the property I'm renting out or they mean some other properties? In addition, it asks me to provide information like • Property's total basis • Basis for land only. How can I calculate Basis for land only?

@Andrew Great, assuming you own the land (which I assume you do since you refer to the property as a townhome rather than a condo), if the assessor does not assign separate values to land and building, you will have to use one of the alternative methods. These require a more individualized analysis, and I would recommend you reach out to a CPA.

I just spoke to the Appraisal office and I was told that because it's a townhome they do not separate between land and building. it's just total value, example $125K. What should I specify for Basis for land only, in this case?

"price + closing cost" Certain closing costs. Others may need to be amortized, and other things running through the closing statement may be deductible in the year of purchase. There may even be things running through your HUD-1 that doesn't fall into any of these buckets. This is why people typically hire CPAs... "Basis for land only using the formula you mentioned" Yes, multiply total basis by the assessor's percentage for land. "Could you tell me please what site I can use to look up that information in Florida?" It's county-by-county. I would suggest you Google "X County assessor" where X is the name of the county where your property is located in and look for something on that site like "property tax information" or "property tax data" or something like that.

So, where it says Add Property I add the property I'm renting out and where it asks for Properties Total Basis I specify price + closing cost and for Basis for land only using the formula you mentioned, right? Could you tell me please what site can I use to look up this information in Florida? Thank you in advance

@Andrew Great "Is this related to the property I'm renting out or they mean some other properties?"Yes, this is for property you're renting out. "How can I calculate Basis for land only?" There are a few ways to do this for SFRs, but what people typically do is take the total basis (not just the purchase price; you have to make various additions for closing costs, etc.) and multiply it by how the county assessor's land percentage (i.e., assessor's "land value" over assessor's "total value"). This information is public record, and in most counties you can find it online. This is probably the easiest way to do it, but it's not the only way. You can also use replacement cost method, agreed-upon valuations, and comparable land sales (and these methods may allow you to allocate more to building), but whatever you use has to be "reasonable" (vague, I know).

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Updated almost 8 years ago on 03/29/2017. Most recent reply

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Andrew GreatPoster

North Miami Beach, FL

General Landlording & Rental Properties

Can I add my rental property to a form 4562 Depreciation?

Andrew GreatPoster

North Miami Beach, FL

Posted March 29, 2017 09:23

I'm working on preparing my taxes using HR Block and I have a few questions related to the Form 4562. This form is for my rental property depreciation. It says I can include the items below.

Computers and computer software
Rental real estate
Copiers and other office machines
Specialty equipment
Office furniture
Other property expected to last more than one year

As for the item number 2 - Rental real estate. Is this related to the property I'm renting out or they mean some other properties?

In addition, it asks me to provide information like

Property's total basis
Basis for land only.

How can I calculate Basis for land only?

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