I would like some advice on what other owners have done in regards to the depreciation of a park on their tax return since my accountant has not previously had any experience preparing a return for a park owner before.
I understand that the general rule of thumb is that you can depreciate anywhere from 50% to 75% of the value of the park as improvements (infrastructure, utilities, etc.) and that you cannot depreciate raw land. However, I would like some advice as to whether you can depreciate based on your total purchase price or whether it should be based on the appraised value of the property available on the county assessor website.
In my case, the appraised value of the park is about $100,000 less than my purchase price so this would make a large difference on my tax return depending on which one I choose.