Imagine you bought a property for $2M.The land (excluding any structures) is valued at $400K.Since land is not depreciable in the eyes of the IRS, we subtract the land value from your purchase price to get your depreciable basis.Your depreciable basis is simply where a cost seg engineer starts from when allocating your eligible assets into either 5, 7, or 15 year property.In the scenario above, your starting basis would be $1.6M since your basis = your purchase price - the land value.Having an accurate land value is essential to getting your depreciation/bonus depreciation calculations right.This is the starting point for any cost seg study that you do.

I've had some early success but thought I would put it out there:So simply put...

They may want to extend for a year after the 6 months at a discounted LTR rate or it is simply a transition place while they look to buy, etc

In your case, I would simply point out that they forgot to give a value for that space.

LTR:The STR loophole can be a huge tax advantage because you can use depreciation and other expenses to offset your regular income, which is a big win.

We learned that some properties simply require strong market insights and timing rather than major renovations to achieve a solid profit.

If the landlord was aware of his past, yet rented to him anyway - any lawyer worth their salt would make a nexus between those two pieces of information and create a liability claim.In addition to the extreme negative press you would get, it also takes time, money and energy to defend a lawsuit you will eventually win.

Right now, the technology is not yet suitable for small projects, simply because the transactional costs are way too high and there's no secondary market.

If you have the cash to complete the transaction as is, I would recommend simply paying the balance.  

I'm not going to do anything at this moment, but if I do not hear anything, I was simply just wondering what the options were or if anyone has had this situation before.