Determining Building value vs Land value for Depreciation in NYC

I own a condo in a multi-unit condominium in Manhattan. I recently rented my condo out. I want to depreciate the asset using MACRS over 27.5 years. The IRS wants the building’s value in order to determine depreciation schedule.

How do I determine the land value vs building value of the condominium building?

Once I have the building value, I can multiply that value by my % ownership. That should be my numerator in my depreciation calculation.

Thanks

decoart

in General Discussion 6 years and 3 months ago

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decoart | 6 years and 3 months ago

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I did some more reading on this. You’re correct @daveinbedstuy – it doesn’t have anything to do with NYC tax assessed values. Accountants have used the 80/20 rule in the past but the IRS seems to be cracking down on that in areas where land values are high. I’ll get an opinion of a local tax accountant.

http://www.marcumllp.com/insights-news/allocation-of-costs-to-land-when-purchasing-real-estate

daveinbedstuy | 6 years and 3 months ago

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This is a question for an accountant. It has nothing to do with NYC assessed values. I’m guessing the price you paid for the condo plus any capiytal upgrades you made is what will get depreciated.

decoart | 6 years and 3 months ago

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When I enter just the building information I get the following error message:
PARCEL FOUND IS A CONDOMINIUM. PLEASE ENTER THE APT# TO FIND THE BLOCK AND LOT.

NYC lists the assessed value of the condo at 10% of the actual market appraised price.

I want to know what the entire building is worth.

jimhillra | 6 years and 3 months ago

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Department of finance website: https://webapps.nyc.gov/CICS/fin1/find001i