Depreciation on a Condo - Posted by Kim

Real Estate Investing
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Posted by TomC (MD) on February 15, 2002 at 11:33:23:

On mine, both values are on the annual tax statements. I can also look them up online…maybe your county has a website as well?

TomC

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Depreciation on a Condo - Posted by Kim

Posted by Kim on February 15, 2002 at 10:09:17:

I started renting a condo in 2001 and now its income tax time. I know I am able to depreciate over 27.5 years, but I don’t know if I can depreciate the whole purchase price. It is a second floor condo (hence as far as I know it has no land) and nothing I have gives a breakout between structure value and land value. Is the whole purchase price of a condo considered structure and therefore fully depreciable?

Thanks… Kim

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Re: Depreciation on a Condo - Posted by TomC (MD)

Posted by TomC (MD) on February 15, 2002 at 11:04:46:

Hi Kim,

This is one of the less-mentioned advantages of rental condos- the high depreciation basis.

You do have some land value, though. And land is not depreciated - only improvements. What I did was to pull up the tax records for mine and look at the assessed value of the land compared to the assessed value of the improvents. I used that ratio to determine my depreciable basis.

For example, the land was only 13% of the total value. I multiplied my purchase/acquisition costs by 87% to get my depreciable basis.

TomC

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Re: Depreciation on a Condo - Posted by Kim

Posted by Kim on February 15, 2002 at 11:28:44:

Tom,

Thanks for the info. Would these assessed values show up on my tax bills or would they only be available at the assessor’s office?

Thanks,

Kim