#5: Land Vs. Building - 3 Ways To Calculate It, And 1 Way To Avoid At All Costs

Join The Conversation On Facebook - Tax Professionals - https://www.facebook.com/groups/realestatefortaxprosReal Estate Investors - https://www.facebook.com/groups/REIKnowledgeVaultWant To Attend An Event or Have Natalie Speak at Your Event?Upcoming Speaking and Teaching Events - https://www.natalie.tax/Referenced In This Episode: TC Summary 2017-31  -https://casetext.com/case/nielsen-v-commr-2In this episode of 'Real Estate is Taxing,' host Natalie Kolodij discusses the intricacies of real estate tax, focusing on depreciation and the importance of allocating land and building value when setting up a rental property. Natalie explains how depreciation allows rental property owners to write off the value of the building and improvements over time, emphasizing that land cannot be depreciated because it does not wear out. She outlines acceptable methods for dividing purchase price into land and building values. Natalie also debunks common misconceptions and provides guidance on ensuring accurate depreciation schedules. 00:00 Introduction to Real Estate Tax Education00:27 Upcoming Tax Education Opportunities01:40 Deep Dive: Depreciating Rental Properties02:31 Understanding Depreciation: The Basics03:21 Adding Costs to Your Property's Basis04:07 Navigating Escrow and Loan Costs09:38 The Importance of Separating Land Value16:04 Choosing the Right Method for Land Valuation21:27 Avoiding Common Depreciation Mistakes27:20 Conclusion and Invitations