For depreciation, what is a fair allocation of value between building vs. land?

Question

I understand that commercial properties can allocate more towards building, and apartments a little less. Just want to know a reasonable range for both. Are downtown high rises even more heavily weighted towards building value?

Answer 1

I look for vacant lots for sale in the area (zoned similarly) and figure the cost per square foot for the land. Then apply that to the land area in question.

And/Or

Many taxing districts apportion the appraisal for tax purposes between the land and the improvements. I use the same percentage applied to the purchase price.

Then I pick the lowest land value from those methods. On the couple of times the IRS questioned it they accepted my numbers since I had a rational justification.

Ideally you want the land value as low as possible since you can't depreciate it.

Answer 2

That's a technical answer for IRS Gurus I'm not one of those.
I do have all the links provided by the IRS answering that question from our research department and I would give you the links from our research files that the IRS department has provided to the public answering your question but yahoo answers says that providing links with the proper answers to questions is spamming and using the source of where those links come from is advertising and they rather just have written answers from sources that are not qualified to provide such answers. Here is their letter to me:

You have posted content to Yahoo! Answers in violation of our Community Guidelines. As a result, your content has been deleted.

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