All Forum Posts by: Anx Carter

Thanks Bonnie. I am thinking about doing Cost Segregation Study done. From what I have read so farm, it might be worth it. Next step is to find a competent and reasonable firm in SoCal :)

@Anx Carter Your safest bet is to have your CPA/tax professional determine the land value. They have to report that on the Federal Depreciation Schedule that is required from year to year on your property anyway. Let them take the risk of justifying their numbers to the IRS. This protects you if you are ever audited.

Your depreciation will actually start in the month and year it became "occupied" as a rental, based on the original purchase price, minus land, plus whatever capitalized items you did to prepare the property for rent.

1 Vote

Orange County, California

Thanks @Glen Wiley!

0 Votes

Orange County, California

Hi @Nate Meeker, not really. There are not many land lots available in my city, even the outskirt extensions.

0 Votes

Orange County, California

Thanks @Sean O'Keefe! Just to clarify, in the above screenshot, can I use ($938,233-$565,00 = $373,233) as cost basis ?

0 Votes

Orange County, California

Hi All,

Newbie here. I purchased my home in 2019 however put it as a rental only in 2021. From 2019 county records, land is 86% of the total value of the property which is not realistic. I do have a home appraisal report from 2019 as part of the original purchase, which allocates land to be about 60% of the total value. Am I OK to use the appraisal report as my cost basis? Does this have any reasonable standing in case of an IRS query (as to why I am not using county's numbers)?

Here are the numbers from Appraisal report, in case it helps - https://prnt.sc/5UtpzLTG66JW

0 Votes

Orange County, California

All Forum Posts by: Anx Carter

Anx Carter has started 1 posts and replied 5 times.

Post: Tax Purposes - Cost Basis for Depreciation - Appraisal Report VS County Assessment

Post: Tax Purposes - Cost Basis for Depreciation - Appraisal Report VS County Assessment

Post: Tax Purposes - Cost Basis for Depreciation - Appraisal Report VS County Assessment

Post: Tax Purposes - Cost Basis for Depreciation - Appraisal Report VS County Assessment

Post: Tax Purposes - Cost Basis for Depreciation - Appraisal Report VS County Assessment