property tax question: cost of land vs. house

My tax accountant is asking for the assessed value of the land our house is on (Brooklyn). I gave him our NYC Property Assessment Roll, but we’re both not sure which number he should use. (I should add that a family member is our accountant, and though he lives in New York State, he does not live in NYC). This is what the Assessment Roll says: **Assessment Information** ESTIMATED MARKET VALUE: XXX,XXX (Total) 6-20% LIMITATION: XX,XXX (Land) / XX,XXX (Total) ACTUAL EX AV: X,XXX (Land) / X,XXX (Total) **Taxable/Billable Assessed Value** SUBJECT TO ADJUSTMENTS, YOUR 2015/16 TAXES WILL BE BASED ON XX,XXX (Assessed Value) I’m interpreting that “ACTUAL EX AV” is a “School Tax Relief” exemption, and that the “Taxable/Billable Assessed Value” equals the “6-20% Limitation” minus the “Actual Ex Av”. Is what the “land is worth” really a 5-digit number, $14,000-ish? That seems so low… If no one knows the answer, any suggestions on who to contact for help? I have a feeling calling DOF will not get me very far… Also, what’s the difference between “Estimated Market Value” (which is much lower than what re-sale value of the house is) and 6-20% Limitation, which is roughly 4% of the Estimated Market Value? While we’re at it, how is it that annual NYC property taxes are so low? I don’t really get it, I mean, I’m sure the City makes up for it somehow, but it seems really low for owning property in _NEW YORK CITY_. (I’m certainly not complaining – just curious!)

ps158

in About Brooklyn 9 years and 1 month ago

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ps158 | 9 years and 1 month ago

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Thanks for the responses. Yes, it’s for depreciation purposes due to the rental unit. The % is helpful.

resident2 | 9 years and 1 month ago

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Real Estate Tax assessment values have nothing to do with market values, your depreciation schedule or even the equation of land to “improvements” values. It sounds like you would be better off using an accountant that actually has other clients that depreciate their rental housing and have rental income. On most of my depreciation schedules we started at a rate of land being 10% of the basis cost. ( Today in some neighborhoods it could be argued that land is worth more; yes if you intend to knock down the building) What ever you start at just keep to the same proportionate share equation each year in the future.

daveinbedstuy | 9 years and 1 month ago

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Not sure why he is looking for this. Are you trying to determine the amount of depreciation for a rental unit? Accounting issues like this are v=based on purchase price and capital additions. Nothing to do with land vs. building assessments. Assessed values in NYC have no relation to market values unlike many places around the country.