Land Value Percent

The percentage of property value attributed to the land (non-depreciable).

Example Result

Sample Data

20.00%

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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Land Value Percent Formula

User Input (%)

User Input (%)

20.00%

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

Used to Calculate

Land Value Percent is used as an input for these calculations:

Platform Distribution

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Why 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%.