Land cost percentage

[Pacun]

Client purchased a warehouse in Chantilly, VA and I wonder how much to allocate for LAND. It is a warehouse with two outside parking spots and a loading dock.

Is 35% for land too much? Where can I find such information? I have seen that tax bill and they didn't break it up.

[Lee B]

I don't know about Virginia, but in Oregon, if you know the street address, you can find sales, assessment and tax information going back over 20 years

at each county assessor's website.

[Catherine]

Plus in some areas the first real estate tax bill will show the assessment for buildings, improvements, and land.  Or at least total and buildings, and subtraction will get you land value.

[Abby Normal]

13 hours ago, Pacun said:

Is 35% for land too much? Where can I find such information? I have seen that tax bill and they didn't break it up.

You have to base it in reality and not pick a number at random. You don't need the tax bill you need the assessment. Assessments are available online in most states.

I believe there is a sticky post for sites for each state on this forum.  Not sure if VA has been added. Some states have one for each county.

VA appears to be by county: http://icare.fairfaxcounty.gov/ffxcare/search/commonsearch.aspx?mode=address

[JohnH]

So when using the tax assessment, and assuming it's a recent assessment, do most of you just use the land value on the assessment?  Or do you calculate the ratio of land to buildings on the assessment and then apply that ratio to the purchase price to arrive at the figures you actually use? 

[RitaB]

6 minutes ago, JohnH said:

So when using the tax assessment, and assuming it's a recent assessment, do most of you just use the land value on the assessment?  Or do you calculate the ratio of land to buildings on the assessment and then apply that ratio to the purchase price to arrive at the figures you actually use? 

I use the ratio of land to buildings to assign costs.  If the assessor thinks 20% is land, I multiply the purchase price times 20% to get the cost of the land. 

[SaraEA]

The really late season filers are the most disorganized and are still feeding you missing info up to the last second.  April 15 wasn't good enough, so if you tell them they have until Oct 15 they will wait until then.  If you give them five more days, that's how long it will take them.  They are the same people shopping on Christmas Eve I'm sure.  You have to draw a line somewhere, and I would never ever allow them five more days.  I have places to go and things to do, thank you.  Like Abby, I had a client whose return was finished on Tuesday who told me today to reduce some of those business expenses (must have had a guilty conscience).

As far as land-building values, I have found that the percentages the towns use don't change.  If you have an assessment from 2010, it's likely the land and improvements have retained the same ratio.  The accountant who used to own our practice used to use 20% for land--obviously a random number like Abby said.  I guess it was the common practice 30 years ago.  Things sure have changed when people will buy a home for $1m just to knock it down and build what they want on it.  Guess you could say the land was worth $1m to them.

Edited October 18, 2018 by jklcpa
moved 1st paragraph to its own topic

[Max W]

In the SF area we are getting 65-70% land evaluations.  

[jklcpa]

22 minutes ago, cbslee said:

  I am very confused. I thought this thread was about the allocation of land and building costs ????

I took care of this, cleaned up this topic, and moved all of the posts about forcing an e-filed return to reject to gain additional time all to their own topic.

Let's keep this discussion about the allocation of land.  Thanks.

[Lion EA]

You take good care of us, Judy!