Why the split matters
Land isn't depreciable, so a higher building allocation means a larger annual deduction. The IRS expects a reasonable, defensible allocation — not one gamed purely to maximize deductions.
Common methods
Assessor ratio: use the county's land-to-building ratio from your property tax bill. Appraisal: a professional appraisal separating land and improvements. Insurance/replacement cost: sometimes used as supporting evidence.
Keep documentation
Whatever method you use, keep the records. If the split is challenged, you'll want the assessor statement or appraisal that supports it.
Frequently asked questions
What's the easiest way to split land and building value?
The county assessor's land-to-building ratio is the most common, well-documented method.
Can I choose any split I want?
It must be reasonable and defensible. An assessor ratio or appraisal supports your allocation.
Educational information and estimates only. Not tax advice. Tax rules change and vary by situation; consult a qualified tax professional before acting.