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Old Yesterday, 09:24 AM
 
5,665 posts, read 2,607,494 times
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Quote:
Originally Posted by Serious Conversation View Post
Absolutely.

There is tons of vacant land here in the coal country part of southwest Virginia. As coal has declined, the overall area has declined and housing/land values in many of the impacted communities are basically in free fall.

Very few people are going to want undeveloped acreage that is an hour away from even small cities, basic medical, no jobs, etc.
Please re-read.


No one disputes that the market value of land can go down.


THAT IS NOT DEPRECIATION.
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Old Yesterday, 09:29 AM
 
Location: Florida
4,566 posts, read 4,020,706 times
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Quote:
Originally Posted by turf3 View Post
Please re-read.


No one disputes that the market value of land can go down.


THAT IS NOT DEPRECIATION.
Non accountants don't get it. But you are exactly correct.

Now try to explain depletion, LIFO VS FIFO, and 'goodwill'.
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Old Yesterday, 09:49 AM
 
Location: North Idaho
23,194 posts, read 29,646,309 times
Reputation: 45582
Quote:
Originally Posted by mrxalleycat View Post
CPA: "Land is never depreciable, although buildings can depreciate"

Does that mean land is more valuable than the building?

Is it true land never depreciate therefore making it a "fixed" asset?

Your CPA is talking about how to figure your income taxes. It has nothing to do with what you paid or what you can sell for. It is about what you can deduct from your income taxes.


For your income taxes, you can depreciate the building (even if it is actually going up in fair market value) and you can not deduct depreciation for land.



Your depreciation is based upon what you paid and has nothing to do with what you can sell for and has nothing to do with changing values.


It's income tax law. don't expect it to make any sense and don't feel bad if you don't understand it. Your CPA happens to be right on this one.
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Old Yesterday, 09:57 AM
 
11,401 posts, read 8,097,971 times
Reputation: 12344
Quote:
Originally Posted by Grlzrl View Post
You haven't been to California much, right? It's ALL land value there. Except newer, bigger home. But even then a lot of the value is in the land.

You guys think you are the center of the world when in fact NYC is the center of the world and Manhattan has some of the most expensive land anywhere. So cmon there are 49 other states.

I know the land can be worth more and that a home worth $50K in one state would be worth $1 million in another and that's because of the location.
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Old Yesterday, 10:24 AM
Status: "Hard Money Lender " (set 1 day ago)
 
169 posts, read 37,361 times
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Quote:
Originally Posted by LifeIsGood01 View Post
You guys think you are the center of the world when in fact NYC is the center of the world and Manhattan has some of the most expensive land anywhere. So cmon there are 49 other states.

I know the land can be worth more and that a home worth $50K in one state would be worth $1 million in another and that's because of the location.
Have a liittle chip on our shoulder do we? No one said CA is the center of the world. If you want to talk "most expensive land anywhere" take a look at land in Hong Kong.

If you know land can be worth more than the building, why did you say the exact opposite in your earlier post?
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Old Yesterday, 11:27 AM
 
Location: equator
3,934 posts, read 1,714,362 times
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Quote:
Originally Posted by txfriend View Post
Until you have a flood.
Yeah. Some friends here actually LOST 2 beachfront lots after the earthquake. (up north, not here)

The land is just GONE.

After waiting 3 years to sell our rural Utah place, we finally sold it for just the land value.

Improvements: down the drain.
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Old Yesterday, 06:44 PM
 
9,774 posts, read 16,117,608 times
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Quote:
Originally Posted by BoBromhal View Post
the actual value of land can certainly go up and down.

your CPA is trying to explain to you accounting terms ... probably for an investment property. When depreciating an investment property, there's a schedule for the building, one for personal property, one for "landscaping"/exterior items, and then no schedule for land to be depreciated
All true. However, land does deplete if it produces income, such as minerals, timber, coal, oil, etc.


Say you own a gold mine. Its assumed, for accounting purposes, your land will eventually run out of gold. Say it depletes X amount of gold over Y number of years. The land never completely depletes, but it depletes for accounting purposes.


Complicated? That's why you hire a CPA
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Old Today, 05:44 AM
 
5,665 posts, read 2,607,494 times
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Quote:
Originally Posted by kab0906 View Post
Non accountants don't get it. But you are exactly correct.

Now try to explain depletion, LIFO VS FIFO, and 'goodwill'.

I am not an accountant.
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Old Today, 12:09 PM
 
Location: Columbia SC
9,336 posts, read 8,067,211 times
Reputation: 13010
When it came to investing my brother always said, you cannot get hurt in dirt.
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Old Today, 12:29 PM
 
73,586 posts, read 73,419,195 times
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Quote:
Originally Posted by johngolf View Post
When it came to investing my brother always said, you cannot get hurt in dirt.
there are likely many thousands who will tell him he is wrong
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