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Land Basis Calculator

Land basis is non-depreciable; building basis depreciates over 27.5 years (residential) or 39 years (commercial). The allocation matters — every dollar of basis correctly assigned to building generates tax depreciation. Tax assessor land/building ratios are the IRS-defensible default. This calculator runs the allocation including proportional acquisition cost split.

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Land basis (non-depreciable)

$122,870

Building basis (depreciable)

$435,630

Land value (price only)

$121,000

Building value (price only)

$429,000

How the math works

Land basis is non-depreciable. Building (improvement) basis depreciates over 27.5 years (residential) or 39 years (commercial). Land/building allocation typically uses tax assessor ratios as the IRS-defensible default.

Acquisition costs (title, legal, survey) allocate proportionally between land and building based on the same percentage.

How to Use

  1. Enter purchase price.
  2. Choose allocation method (assessor / appraisal / manual).
  3. Enter the relevant percentage.
  4. Enter acquisition costs.
  5. Read final land and building basis.

Frequently Asked Questions

Why use assessor ratio?

It's IRS-defensible and easy to support. Even if the dollar amounts on assessor are below market, the percentage split is generally accepted.

Can I push more to building?

Yes if you have justification (appraisal showing higher building share, cost segregation study). Aggressive allocation gets audit risk — be ready to defend.

What if assessor is missing?

Use comparable land sales for vacant lots in the area, or ratio of assessed value of comparable improved properties. Some CPAs use 20% land for SFR rentals as default if no other data.

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