OK, say you bought house for $250K. Your county property tax shows value of land $50K and improvement $120K. Remember this assessed value is not the same as your purchase price. Here is your formula:
Prorated Improvement = assessed improvement/total assessed value; ie.:
Prorated imrpovement = 120K/($50K + $120K) = 70.59%
Now multiply your purchase price to this % = $250K x 70.59% = $176,470.60
This is your base. Each year you can depreciate $176,470.60/27.5 = $6,417.11
that's it.
