COST and % OF ASPHAULT ?

[SAM]

How to determine the % of a commercial parking lot with a commercial rental building on it ?

1) Client purchased commercial parking lot with a commercial buliding on it - client rents the building and separatelyalso rents the parking lot to a trucking business

2) Commercial buliding - no problem - depreciate 39 years

QUESTIONS: would the asphault parking lot (excluding the land underneath) be depreciated ? If so, would it be 15 years? What is the best method to arrive at the percentage of the asphault parking lot to depreciate?

[Bees Knees]

I guess if you could determine the value of the parking lot verses the value if it was just plain dirt, then you could depreciate the excess as land improvements over 15 years.

However, I'm not sure how you could come up with a value. Is it worth getting an appraisal?

[S T]

Parking Lot

I have a client that I inherited some odd 10 years ago. She has had a parking lot as part of her realty investment portfolio.

The prior tax practioner never depreciated the property relating to the parking lot, nor have I changed it over the years.

Thinking is that it is just dirt, with the paving improvement. I guess maybe you could depreciate the paving improvement, but we never went there.

Pure income, less maintenance repair expenses, property tax and insurance.

Sandy