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Posted by jlficken on January 18, 2007, 4:01 am
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I bought a house in 2004 for $88,500 including the land. I
am now renting it this year and am confused on what to list
for the 'Total basis for the property' and the 'Basis for
the land' in H&R Block Tax Cut software. I didn't know it
would be so confusing. I have no idea what the land is
worth so I don't know what to put. Any help would be
greatly appreicated.
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Posted by Phil Marti on January 19, 2007, 1:20 am
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> I bought a house in 2004 for $88,500 including the land. I
> am now renting it this year and am confused on what to list
> for the 'Total basis for the property' and the 'Basis for
> the land' in H&R Block Tax Cut software. I didn't know it
> would be so confusing. I have no idea what the land is
> worth so I don't know what to put.
One possible source is your real estate tax bill. It may
allocate your valuation between land and improvements. You
could then apply that ratio to your purchase price.
Not that you asked, but you'd be wise to abandon TaxCut for
this year and hire a preparer. The bulk of the fee would be
deductible on your 2007 Schedule E, and once everything is
set up, the later years run pretty smoothly.
--
Phil Marti
Clarksburg, MD
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Paul Thomas, CPA on January 19, 2007, 1:20 am
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> I bought a house in 2004 for $88,500 including the land. I
> am now renting it this year and am confused on what to list
> for the 'Total basis for the property' and the 'Basis for
> the land' in H&R Block Tax Cut software. I didn't know it
> would be so confusing. I have no idea what the land is
> worth so I don't know what to put. Any help would be
> greatly appreicated.
If you can, find out what a vacant lot (of the size of
yours) in that area would have sold for back in 2004.
Otherwise make a *best guess* as something is better than
nothing. My feeling is that the land would fall in the $5k
- $8k range. If it's worth the cost (and it reeally isn't)
you could hire an appraiser to crunch the numbers.
--
Paul Thomas, CPA
paulthomascpapc@bellsouth.net
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Benjamin Yazersky CPA on January 19, 2007, 1:20 am
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> I bought a house in 2004 for $88,500 including the land. I
> am now renting it this year and am confused on what to list
> for the 'Total basis for the property' and the 'Basis for
> the land' in H&R Block Tax Cut software. I didn't know it
> would be so confusing. I have no idea what the land is
> worth so I don't know what to put. Any help would be
> greatly appreicated.
You need to segregate the cost as the land cannot be
depreciated
___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Mike Wellman on January 19, 2007, 1:20 am
Please log in for more thread options jlficken@gmail.com wrote:
> I bought a house in 2004 for $88,500 including the land. I
> am now renting it this year and am confused on what to list
> for the 'Total basis for the property' and the 'Basis for
> the land' in H&R Block Tax Cut software. I didn't know it
> would be so confusing. I have no idea what the land is
> worth so I don't know what to put. Any help would be
> greatly appreicated.
You would typically have an appraisal. Short that, your
local tax appraising district will have the assessed value
for the land and improvements stated separately. You could
use that ratio to split them out. It is ironic because the
HRB commericial touting its audit defense says "ask the
box".
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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