#5: Land Vs. Building - 3 Ways To Calculate It, And 1 Way To Avoid At All Costs
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Upcoming Speaking and Teaching Events - https://www.natalie.tax/
Referenced In This Episode:
TC Summary 2017-31 -https://casetext.com/case/nielsen-v-commr-2
Tax Professionals - https://www.facebook.com/groups/realestatefortaxpros
Real Estate Investors - https://www.facebook.com/groups/REIKnowledgeVault
Want 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-2
In 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 Education
00:27 Upcoming Tax Education Opportunities
01:40 Deep Dive: Depreciating Rental Properties
02:31 Understanding Depreciation: The Basics
03:21 Adding Costs to Your Property's Basis
04:07 Navigating Escrow and Loan Costs
09:38 The Importance of Separating Land Value
16:04 Choosing the Right Method for Land Valuation
21:27 Avoiding Common Depreciation Mistakes
27:20 Conclusion and Invitations
