Hanco

Just doing our tax return... Anyone got advice on splitting land and real estate property value?

Easy if the property is in the US, because it's shown. UK tho... We don't have property taxes based on the real estate built on the land (ok, Council Tax banding, but that does not split land value alone from the house)

So what has anyone done when filing their return?

Of course the question comes into play when looking at depreciation. The land does not depreciate, only the real property on it.

Thanks for any input people

mrken30

Couple of links that may help

http://www.phillyappraisalblog.com/p...-value-ratios/

Land and Property Values in the U.S. | Land Prices by State

Use the data set and look for similar type of demographic as the property in the UK. EG If it is in London use similar percentage as New York City. If its in Wales, use something like Montana.

Pulaski

For an average property in the burbs it's going to be about 80% for the building, 20% for the land. Further in, towards the centre, or on a main road, it might be more for the land if there is development potential e.g. if it could be rebuilt as an office or block of flats. If the land is shared between many units then it might be more for the building. E.g. a block of 20 flats might have 90% of the value in the building because the land is shared between so many.

Hanco

Thanks guys!

Cook_County

20% land is the standard rule of thumb.