Property fundamentals
Building Value %
Portion of purchase price allocated to depreciable building (not land). Defaults to 80% for SFR; land value varies by market.
Why Building Value % matters
A supported allocation to depreciable building affects the modeled depreciation deduction. The allocation must be grounded in the property's facts; a default percentage is only an input assumption, and passive-loss and other limits determine the actual tax effect.
Related terms
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