Land Value Percent
The percentage of property value attributed to the land (non-depreciable).
Example Result
Sample DataBased on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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User Input (%)
Where to Find This Value
Here's where you can find the value for Land Value Percent:
County Assessor
Most assessors show a land vs. improvement split on the property tax assessment
Appraisal Report
A professional appraisal breaks down land value separately from improvements
Calculations That Use Land Value Percent
Platform Distribution
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Unlock Rental Property CalculatorWhy It Matters
Land value percentage directly determines your depreciable basis, which drives annual depreciation deductions and tax savings. A lower land percentage means a higher depreciable basis and larger annual deductions. The IRS may challenge unreasonable allocations, so use your property tax assessment, appraisal, or cost segregation study for defensible numbers.
Detailed Explanation
Land Value Percent is the portion of the total property value attributed to the land, as opposed to the building and improvements. Only the building portion is depreciable for tax purposes — land cannot be depreciated. Typical land value allocations range from 15–30% depending on location. Urban properties in expensive markets may have land values of 40%+ while rural properties might be 10–15%.
Example
Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
Related Calculations
Accumulated Depreciation
UTotal depreciation deducted over the actual ownership period, based on the purchase date.
Depreciation
1Annual straight-line depreciation deduction for the building.
Depreciation as Percent of Income
2Annual depreciation as a percentage of effective gross income.
Tax Savings From Depreciation
2Dollar amount saved in taxes due to depreciation deduction.
Cash Flow from Depreciation™
2Additional effective cash flow generated by depreciation tax savings.
Effective Tax Rate
WEstimated income tax as a percentage of NOI.
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