Condominium Depretiation

[Baruch B]

Dear All,
We couldn't find this in the tax book. Assuming a condominium must allocate the land from the total cost what would be the percentage to be used in the state of Florida? Is 15% for land okay.

[Brian EA]

There is no allocation for land in a condo.

[Rapid Robert]

In many condo associations, the condo owner does in fact own a percent of the common land area. It is incorrect to say that there is never an allocation for land. Do some internet searches for backup.

IMO and experience, 15% is OK, so would 50% be OK. For a single condo unit, just about any percent in that range is probably going to fly through the IRS without question. (Even an incorrect allocation of zero percent most likely wouldn't attract scrutiny).

[terryats]

someone owns the land. So it's either the condo owners or someone else. If the whole building is owned by the condo owners then they'd have pro rata land value. If another entity owns the building it also owns the land and the condo owners own their condos only. So it kinda depends. Check your Deed and Title, there should be info on there describing what you bought. If it's just the unit it's just the unit. If it's the unit and a portion of the land or rest of the building then it's that.

[Lion]

I agree to check your purchase documents. Also, check your property tax details.