Condo land value = 0. Urban legend?

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FunOnABudget
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Condo land value = 0. Urban legend?

Post by FunOnABudget »

I'm working up depreciation for a recent condo purchase. The property taxing authority lists the land value as zero. There is no separate entry for the land in the taxing authority web site. The HOA does not have a ground lease on the property, no money is paid for leasing the land. Hence the land is owned by the HOA or in aggregate by the condo owners.

There are various web pages purporting that the land value for condos is truly zero for depreciation purposes. This would mean that you are depreciating the value of the land which doesn't sound right.

Can anyone provide information that came from the IRS to this effect ? It seems like a fairy tale / urban legend. Also has anyone gone thru an audit with taking depreciation on 100% of cost basis in this case ?

Thanks.
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snackdog
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Re: Condo land value = 0. Urban legend?

Post by snackdog »

FunOnABudget wrote: Sun Feb 05, 2023 1:43 pm ...

There are various web pages purporting that the land value for condos is truly zero for depreciation purposes. This would mean that you are depreciating the value of the land which doesn't sound right.
...
Land does not depreciate, condo, house, building, barn, or Trump Tower. So it should be ignored, left out of depreciation calculations, or set to zero.
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Re: Condo land value = 0. Urban legend?

Post by fabdog »

From page 8 of pub 527 on depreciation
Separating cost of land and buildings. If
you buy buildings and your cost includes the
cost of the land on which they stand, you must
divide the cost between the land and the build-
ings to figure the basis for depreciation of the
buildings. The part of the cost that you allocate
to each asset is the ratio of the FMV of that as-
set to the FMV of the whole property at the time
you buy it.
If you aren’t certain of the FMVs of the land
and the buildings, you can divide the cost be-
tween them based on their assessed values for
real estate tax purposes.
Example. You buy a house and land for
$200,000. The purchase contract doesn’t spec-
ify how much of the purchase price is for the
house and how much is for the land.
The latest real estate tax assessment on the
property was based on an assessed value of
$160,000, of which $136,000 was for the house
and $24,000 was for the land.
You can allocate 85% ($136,000 ÷
$160,000) of the purchase price to the house
and 15% ($24,000 ÷ $160,000) of the purchase
price to the land.
Your basis in the house is $170,000 (85% of
$200,000) and your basis in the land is $30,000
(15% of $200,000)
In the case of the condo, where your purchase price does not include any land, you don't own the land, and the taxing authority does not assign a tax value to land at your condo, you would depreciate the condo fully. I have not been audited on this treatment, but it would seem you would have a good case

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alex_686
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Re: Condo land value = 0. Urban legend?

Post by alex_686 »

I will strongly take the opposite position.

Your condo sits on land owned by the association. As a owner you own a portion of that land as laid out in your bylaws.

Since land does not depreciate you need to subtract out the land value from your cost basis to calculate the starting cost basis for depreciation.
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petulant
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Re: Condo land value = 0. Urban legend?

Post by petulant »

Is there maybe a separate parcel ID for the land portion which is owned by the association, where the association covers the minimal property taxes on that value? Seems doubtful but thought I'd shoot. I've seen docs before where a HOA had some property rights and lost them to a county government after not paying taxes (admittedly not in a traditional condo context). If the assoc owns the land separately, but your condo comes with some rights in the assoc, you might need to work on some kind of allocation that way.
Mr. Rumples
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Re: Condo land value = 0. Urban legend?

Post by Mr. Rumples »

As a non-profit corporation, if the condo association owns the building, usually the land and structures are not taxed. As a matter of curiosity, I looked up a condo where the city listed the land value as $1,000. Considering the location, it's worth way more than that - the land for the building next to it was valued at $391,500; the building on that land was valued at $47M. This might shed some light: https://wvohoa.org/wp-content/uploads/2 ... rios-1.pdf

The local tax assessing authority will have to be the ones to explain how they handle tax exempt organization land. It might be of interest to find a local VFA building and see how that land is assessed and other condos and even churches.

The individual owner doesn't own the land or the common elements of the structure, the condo association, a corporation, is the owner.
Last edited by Mr. Rumples on Mon Feb 06, 2023 12:07 pm, edited 1 time in total.
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Re: Condo land value = 0. Urban legend?

Post by alex_686 »

Mr. Rumples wrote: Mon Feb 06, 2023 11:55 am As a non-profit corporation, if the condo association owns the building, usually the land is not taxed nor are any of the common elements (land, amenities and so forth) as long as certain requirements are met. As a matter of curiosity, I looked up a condo where the city listed the land value as $1,000. Considering the location, it's worth way more than that - the land for the building next to it was valued at $391,500; the building on that land was valued at $47M. This might shed some light: https://wvohoa.org/wp-content/uploads/2 ... rios-1.pdf

The local tax assessing authority will have to be the ones to explain how they handle tax exempt organization land. It might be of interest to find a local VFA building and see how that land is assessed and other condos and even churches.
I don’t know any HOA that is non-profit. I only know of not-for-profit. i.e. a association. i.e. a taxable organization. As such churches and VFA buildings are taxed very differently.
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the_wiki
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Re: Condo land value = 0. Urban legend?

Post by the_wiki »

Just think about it. You can't do anything else with the land under your condo, so what value does it have? You can't sell it or repurpose it. A standard single-family home could be bulldozed and used as bare land, but you couldn't do it with a condo without getting 4 or 400 other people on board.

So the land has value, but your portion has no value on its own.
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Re: Condo land value = 0. Urban legend?

Post by nydoc »

I think this question about the condo is up in the air.
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Re: Condo land value = 0. Urban legend?

Post by Mr. Rumples »

alex_686 wrote: Mon Feb 06, 2023 12:06 pm
Mr. Rumples wrote: Mon Feb 06, 2023 11:55 am As a non-profit corporation, if the condo association owns the building, usually the land is not taxed nor are any of the common elements (land, amenities and so forth) as long as certain requirements are met. As a matter of curiosity, I looked up a condo where the city listed the land value as $1,000. Considering the location, it's worth way more than that - the land for the building next to it was valued at $391,500; the building on that land was valued at $47M. This might shed some light: https://wvohoa.org/wp-content/uploads/2 ... rios-1.pdf

The local tax assessing authority will have to be the ones to explain how they handle tax exempt organization land. It might be of interest to find a local VFA building and see how that land is assessed and other condos and even churches.
I don’t know any HOA that is non-profit. I only know of not-for-profit. i.e. a association. i.e. a taxable organization. As such churches and VFA buildings are taxed very differently.
This might provide more:
https://spectrumam.com/are-hoas-non-profit/
Last edited by Mr. Rumples on Mon Feb 06, 2023 12:31 pm, edited 1 time in total.
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Re: Condo land value = 0. Urban legend?

Post by deanbrew »

Your condo is defined by the walls, ceiling and floor encompassing your living space. In other words, all building and no land. Yes, there is land underlying your condominium, but it is owned by the condo association. You pay dues to the condo association for the land, parking lots, amenities and other improvements which are not part of what you actually own. You also are legally obligated to pay for maintenance and repair and replacement of your roof, but you don't actually own the roof, either.

If you dig deep enough into the tax assessment, you will surely find a parcel of land owned by the condominium association that is taxed by the county, but that is separate from your condo.
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Re: Condo land value = 0. Urban legend?

Post by exodusNH »

deanbrew wrote: Mon Feb 06, 2023 12:26 pm Your condo is defined by the walls, ceiling and floor encompassing your living space. In other words, all building and no land. Yes, there is land underlying your condominium, but it is owned by the condo association. You pay dues to the condo association for the land, parking lots, amenities and other improvements which are not part of what you actually own. You also are legally obligated to pay for maintenance and repair and replacement of your roof, but you don't actually own the roof, either.

If you dig deep enough into the tax assessment, you will surely find a parcel of land owned by the condominium association that is taxed by the county, but that is separate from your condo.
When I had my condo, my deed explicitly called out that I was a 100%/(number of units owner) of the land and common areas and responsible for the taxes on that ownership.

Regarding taxation, we all had individual property taxes. I don't believe the association paid taxes on the land. When I was on the board, the largest budget items were snow removal and trash.
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Re: Condo land value = 0. Urban legend?

Post by junior »

deanbrew wrote: Mon Feb 06, 2023 12:26 pm Your condo is defined by the walls, ceiling and floor encompassing your living space.
This is often true but not always true. It depends on the project.
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Re: Condo land value = 0. Urban legend?

Post by petulant »

Mr. Rumples wrote: Mon Feb 06, 2023 12:23 pm
alex_686 wrote: Mon Feb 06, 2023 12:06 pm
Mr. Rumples wrote: Mon Feb 06, 2023 11:55 am As a non-profit corporation, if the condo association owns the building, usually the land is not taxed nor are any of the common elements (land, amenities and so forth) as long as certain requirements are met. As a matter of curiosity, I looked up a condo where the city listed the land value as $1,000. Considering the location, it's worth way more than that - the land for the building next to it was valued at $391,500; the building on that land was valued at $47M. This might shed some light: https://wvohoa.org/wp-content/uploads/2 ... rios-1.pdf

The local tax assessing authority will have to be the ones to explain how they handle tax exempt organization land. It might be of interest to find a local VFA building and see how that land is assessed and other condos and even churches.
I don’t know any HOA that is non-profit. I only know of not-for-profit. i.e. a association. i.e. a taxable organization. As such churches and VFA buildings are taxed very differently.
This might provide more:
https://spectrumam.com/are-hoas-non-profit/
Note that 501(c)(3) nonprofit, other 501(c), and state property tax exempt organizations can all be separate categories. There are many types of organizations exempt from income tax, including non-charities that provide benefits to members or a community, such as 501(c)(4) organizations. Some HOAs are 501(c)(4) organizations. Nevertheless, as the article points out, even an organization that is not identified in 501(c) is going to avoid taxes if it just doesn't earn a profit or meets other standards.

But any of those categories are different from state law exemptions from property tax. State law can decide to offer no exemptions; it can do so for organizations roughly similar to 501(c)(3); it can do more than 501(c).

States could also differ in how they treat condo land rights. It's possible for the legal practice in some states to put land rights at the HOA level and others at the individual condo level.

OP should root around in OP's own records and maybe search for information by OP's state.
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Re: Condo land value = 0. Urban legend?

Post by MarkerFM »

A little data point. We own a condo that sits along with other condos on about 11 acres of land. The land is a separate parcel in our county assessor's database. There are amenities and structures on the land including pool, tennis court, clubhouse etc. The parcel and all the improvement have a value per the assessor. The value: $0.
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Re: Condo land value = 0. Urban legend?

Post by deanbrew »

junior wrote: Mon Feb 06, 2023 2:00 pm
deanbrew wrote: Mon Feb 06, 2023 12:26 pm Your condo is defined by the walls, ceiling and floor encompassing your living space.
This is often true but not always true. It depends on the project.
I agree. One size does not fit all. The OP should read the deed, as well as the condominium documents.
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Re: Condo land value = 0. Urban legend?

Post by Mr. Rumples »

petulant wrote: Mon Feb 06, 2023 2:16 pm
Mr. Rumples wrote: Mon Feb 06, 2023 12:23 pm
alex_686 wrote: Mon Feb 06, 2023 12:06 pm
Mr. Rumples wrote: Mon Feb 06, 2023 11:55 am As a non-profit corporation, if the condo association owns the building, usually the land is not taxed nor are any of the common elements (land, amenities and so forth) as long as certain requirements are met. As a matter of curiosity, I looked up a condo where the city listed the land value as $1,000. Considering the location, it's worth way more than that - the land for the building next to it was valued at $391,500; the building on that land was valued at $47M. This might shed some light: https://wvohoa.org/wp-content/uploads/2 ... rios-1.pdf

The local tax assessing authority will have to be the ones to explain how they handle tax exempt organization land. It might be of interest to find a local VFA building and see how that land is assessed and other condos and even churches.
I don’t know any HOA that is non-profit. I only know of not-for-profit. i.e. a association. i.e. a taxable organization. As such churches and VFA buildings are taxed very differently.
This might provide more:
https://spectrumam.com/are-hoas-non-profit/
Note that 501(c)(3) nonprofit, other 501(c), and state property tax exempt organizations can all be separate categories. There are many types of organizations exempt from income tax, including non-charities that provide benefits to members or a community, such as 501(c)(4) organizations. Some HOAs are 501(c)(4) organizations. Nevertheless, as the article points out, even an organization that is not identified in 501(c) is going to avoid taxes if it just doesn't earn a profit or meets other standards.

But any of those categories are different from state law exemptions from property tax. State law can decide to offer no exemptions; it can do so for organizations roughly similar to 501(c)(3); it can do more than 501(c).

States could also differ in how they treat condo land rights. It's possible for the legal practice in some states to put land rights at the HOA level and others at the individual condo level.

OP should root around in OP's own records and maybe search for information by OP's state.
Yes, there is so much variance that state and local statutes are what is important as well as the governing documents. These laws are always changing. Last year, CO passed sweeping revisions to the Colorado Common Interest Ownership Act. Those associations formed prior to July 1, 1992 are governed differently than those formed after. It's also important to note the scope of ownership differences between a condominium association and a homeowners association. Update: looking online at my niece's condo and my nephew's townhouse in an HOA, her taxes are on her unit; the condo building has a tax assessment of $500; he has an assessment on both the land and townhouse.
Last edited by Mr. Rumples on Mon Feb 06, 2023 5:17 pm, edited 1 time in total.
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Re: Condo land value = 0. Urban legend?

Post by 02nz »

Mr. Rumples wrote: Mon Feb 06, 2023 11:55 am As a non-profit corporation, if the condo association owns the building, usually the land and structures are not taxed. As a matter of curiosity, I looked up a condo where the city listed the land value as $1,000. Considering the location, it's worth way more than that - the land for the building next to it was valued at $391,500; the building on that land was valued at $47M. This might shed some light: https://wvohoa.org/wp-content/uploads/2 ... rios-1.pdf

The local tax assessing authority will have to be the ones to explain how they handle tax exempt organization land. It might be of interest to find a local VFA building and see how that land is assessed and other condos and even churches.

The individual owner doesn't own the land or the common elements of the structure, the condo association, a corporation, is the owner.
A condo association is not the same as say a charitable organization. The latter enjoys tax exemptions the former does not. Someone who owns 5% of a condo building necessarily owns 5% of the land - and is thus liable for property tax on that land. The association is not the owner of the land. (In a co-op, by contrast, I believe the land is indeed owned by the co-op - which is why co-ops are typically cheaper but with higher monthly fees, to pay for the mortgage on the land owned by the co-op.)
Last edited by 02nz on Mon Feb 06, 2023 5:11 pm, edited 1 time in total.
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Re: Condo land value = 0. Urban legend?

Post by Big Dog »

alex_686 wrote: Mon Feb 06, 2023 12:06 pm
Mr. Rumples wrote: Mon Feb 06, 2023 11:55 am As a non-profit corporation, if the condo association owns the building, usually the land is not taxed nor are any of the common elements (land, amenities and so forth) as long as certain requirements are met. As a matter of curiosity, I looked up a condo where the city listed the land value as $1,000. Considering the location, it's worth way more than that - the land for the building next to it was valued at $391,500; the building on that land was valued at $47M. This might shed some light: https://wvohoa.org/wp-content/uploads/2 ... rios-1.pdf

The local tax assessing authority will have to be the ones to explain how they handle tax exempt organization land. It might be of interest to find a local VFA building and see how that land is assessed and other condos and even churches.
I don’t know any HOA that is non-profit. I only know of not-for-profit. i.e. a association. i.e. a taxable organization. As such churches and VFA buildings are taxed very differently.

fwiw: Most HOA's in California are non--profit public benefit corps.
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Re: Condo land value = 0. Urban legend?

Post by Mr. Rumples »

02nz wrote: Mon Feb 06, 2023 5:08 pm
Mr. Rumples wrote: Mon Feb 06, 2023 11:55 am As a non-profit corporation, if the condo association owns the building, usually the land and structures are not taxed. As a matter of curiosity, I looked up a condo where the city listed the land value as $1,000. Considering the location, it's worth way more than that - the land for the building next to it was valued at $391,500; the building on that land was valued at $47M. This might shed some light: https://wvohoa.org/wp-content/uploads/2 ... rios-1.pdf

The local tax assessing authority will have to be the ones to explain how they handle tax exempt organization land. It might be of interest to find a local VFA building and see how that land is assessed and other condos and even churches.

The individual owner doesn't own the land or the common elements of the structure, the condo association, a corporation, is the owner.
A condo association is not the same as say a charitable organization. The latter enjoys tax exemptions the former does not. Someone who owns 5% of a condo building necessarily owns 5% of the land - and is thus liable for property tax on that land. The association is not the owner of the land. (In a co-op, by contrast, I believe the land is indeed owned by the co-op - which is why co-ops are typically cheaper but with higher monthly fees, to pay for the mortgage on the land owned by the co-op.)
That is not generally the case in CO and VA when it comes to a condo - an HOA is different. The corporation for a condo owns the land; the owner of the unit is a shareholder just as they are a shareholder of a for profit corporation. Their share in the corporation is defined in the governing documents and statutes. While all charities are non-profits, not all non-profits are charities. For example, many amateur sports teams, cemeteries, some private libraries and museums, animal rescues and garden clubs are non-profits but are not charities. While its easy to get exceptions in the tax code, in general under 528, if an association takes its income from its assessments and and its expenses are consistent with that of a condo or HOA, the profits are not taxable - thus extra going to reserves is not taxed, but income from interest is. Again, a simplification and there are many hoops to jump through and forms to fill out and hence a mgt. company helps. (Of course, even churches are taxed differently by different jurisdictions. In some only the chapel is taxed, in others all the land is not taxed; parish house is not taxed, in others it is.)
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Re: Condo land value = 0. Urban legend?

Post by Raycpact »

When allocating the purchase price to land and building I generally use tax assessor information or appraisal. Use of a reasonable method is what is required.
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Re: Condo land value = 0. Urban legend?

Post by wycherly »

FunOnABudget wrote: Sun Feb 05, 2023 1:43 pm I'm working up depreciation for a recent condo purchase. The property taxing authority lists the land value as zero...

There are various web pages purporting that the land value for condos is truly zero for depreciation purposes. This would mean that you are depreciating the value of the land which doesn't sound right.
I am not an accountant, but an appraiser. The dirty secret of appraisal is that all values are mere opinions and a government appraiser is nearly always doing mass appraisal which means the assessment of any single given property may not be accurate or defendable.

OP, it is actually to your advantage to have 100% of the assessment allocated to improvements, as this allows you to claim all of value for depreciation. As far as I understand, the "land value" allocated in a tax assessment cannot be counted for depreciation. If you can prove that the property tax assessment truly has no allocation to land, I don't see why your current land value of zero would be a problem on your tax return. Property tax assessment allocation seems to be one of the primary methods for determining land and building values for depreciation purposes.

If you're not comfortable with the tax assessment allocation, you could always pay for a private fee appraisal to determine the land value, if any, for that condo. Or perhaps you may already have an appraisal report that was required before getting a loan on the property?
Alternatively, you may be able to appeal your current tax assessment allocation, but the method and time limitations for doing that vary by locality. Additionally, you wouldn't be guaranteed any sort of outcome nor a timely action depending on the number of cases in the locality.
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Re: Condo land value = 0. Urban legend?

Post by LoveAllDogs »

nydoc wrote: Mon Feb 06, 2023 12:14 pm I think this question about the condo is up in the air.
I see what you did there. :D
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Re: Condo land value = 0. Urban legend?

Post by petulant »

I think the argument in this case would be that, while using the assessor value is normally a reasonable position, an assessed value of zero for land might be considered objectively unreasonable. I don't know whether that would come up or not, it's just what I imagine to be the potential problem.
Last edited by petulant on Wed Feb 08, 2023 3:37 pm, edited 1 time in total.
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Re: Condo land value = 0. Urban legend?

Post by ncbill »

junior wrote: Mon Feb 06, 2023 2:00 pm
deanbrew wrote: Mon Feb 06, 2023 12:26 pm Your condo is defined by the walls, ceiling and floor encompassing your living space.
This is often true but not always true. It depends on the project.
Isn't it usually called a townhouse if you own the land?

I live in a multifamily building but have a deeded lot...so my property tax includes separate lines for land and building.
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Re: Condo land value = 0. Urban legend?

Post by deanbrew »

ncbill wrote: Tue Feb 07, 2023 8:11 am
junior wrote: Mon Feb 06, 2023 2:00 pm
deanbrew wrote: Mon Feb 06, 2023 12:26 pm Your condo is defined by the walls, ceiling and floor encompassing your living space.
This is often true but not always true. It depends on the project.
Isn't it usually called a townhouse if you own the land?

I live in a multifamily building but have a deeded lot...so my property tax includes separate lines for land and building.
A townhouse or rowhouse is a style of building. Condominium is a type of ownership. According to the Dictionary of Real Estate, a condominium is defined as "A form of fee ownership of separate units or portions of [multi-unit] buildings that provides for formal filing and recording of divided interest in real property, where the division is vertical as well as horizontal; fee ownership of units in a [multi-unit] property with joint ownership of common areas."

Most often, a condo owner does not own the land, but rather has a right to use the land as provided by the condominium documents and deed. Most, but not all, condos do not include land value in the property taxes, nor does the condo owner have any direct control of the land. It seems entirely reasonable to depreciation the entire purchase price as improvements, not land.

There are lots of styles of buildings that can be owned as condos, including what we think of as apartments/flats, as well as townhouses, detached dwellings, retail stores, offices and even land itself. I have even appraised unimproved (no buildings) business park lots that were "land condominiums". The developer chose this ownership format for a specific reason.
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Re: Condo land value = 0. Urban legend?

Post by alex_686 »

deanbrew wrote: Tue Feb 07, 2023 9:08 am A townhouse or rowhouse is a style of building. Condominium is a type of ownership. According to the Dictionary of Real Estate, a condominium is defined as "A form of fee ownership of separate units or portions of [multi-unit] buildings that provides for formal filing and recording of divided interest in real property, where the division is vertical as well as horizontal; fee ownership of units in a [multi-unit] property with joint ownership of common areas."

Most often, a condo owner does not own the land, but rather has a right to use the land as provided by the condominium documents and deed. Most, but not all, condos do not include land value in the property taxes, nor does the condo owner have any direct control of the land. It seems entirely reasonable to depreciation the entire purchase price as improvements, not land.
In my jurisdiction things are different.

A townhome is a legal definition in my state. In this case where you own the land under the building. We actually have quite a few buildings that look like townhomes but are legally condos. The trick here is that each townhome needs its own utility service. Specifically they each need its own water and sewer lines out to the mains. This is expensive. So a common sewer line and thus a condo.

In my jurisdiction land certainly is part of the condo's value. It has been a while but I am pretty sure that is the IRS view.

Consider this magical hack. I buy a duplex and then convert the building to a condo. As the owner I then rent out the 2 untis. If the land value is now not part of the condo does that mean I can magic away that value from my property taxes? The value remains the same but now I can deduct the whole value, not just the property structure? This seems ripe for abuse.
Last edited by alex_686 on Tue Feb 07, 2023 11:48 am, edited 1 time in total.
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Re: Condo land value = 0. Urban legend?

Post by evancox10 »

deanbrew wrote: Mon Feb 06, 2023 12:26 pm Your condo is defined by the walls, ceiling and floor encompassing your living space. In other words, all building and no land. Yes, there is land underlying your condominium, but it is owned by the condo association. You pay dues to the condo association for the land, parking lots, amenities and other improvements which are not part of what you actually own. You also are legally obligated to pay for maintenance and repair and replacement of your roof, but you don't actually own the roof, either.

If you dig deep enough into the tax assessment, you will surely find a parcel of land owned by the condominium association that is taxed by the county, but that is separate from your condo.

Surely this depends on state law and the individual details of your condominium legal documents (the “declaration”), but it is not true in general that one’s condo ownership does not include any land. As a condo owner you are sole owner of your individual unit, and also part owner of the “common elements”, which includes the land but also other shared elements like the lobby, gym, etc. Your ownership amount for the common elements also (typically) determines your share of the building expenses, setting your dues. (Edit: this is how mine works in a UCA state, see note at end.)

The ownership stake is real, if a little hard to take advantage of. If someone came to your HOA and made them an offer for the whole parcel that the community accepted, the unit owners would be cashed out from the entire sales proceeds in proportion to their ownership amounts. (It might be more complicated than that, the legal documents would govern exactly how the money was distributed.)

When I look at my taxing authority, I see my condo is valued at 10% for the land and 90% for the improvement. I guess it will depend on how your taxing authority works whether or not they split this out.

Edit: this is going to be very, very dependent on state law. 14 states have adopted the Uniform Condominium Act, 9 states have adopted the Uniform Common Interest Ownership Act, and the rest have their own legal regime (if any). Source: https://www.caionline.org/Advocacy/Prio ... fault.aspx
junior
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Re: Condo land value = 0. Urban legend?

Post by junior »

ncbill wrote: Tue Feb 07, 2023 8:11 am
Isn't it usually called a townhouse if you own the land?
Townhouse refers to the building type (In a Townhouse all attached units are side by side rather than stacked). The term "townhouse" has nothing to do with the legalities of who owns the land or how the project is operated.

A townhouse unit can be a condominium unit. It becomes a condominium if the developer records a legal document on the land record saying the condominium act will govern how the project is organized and the legal documents meets the requirements of the state's condominium act.
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FunOnABudget
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Re: Condo land value = 0. Urban legend?

Post by FunOnABudget »

Thanks everyone for the lively responses. I've got some data points I can use to make the calculation. It's too bad that there isn't better IRS guidance than the sentence in Pub 527.

I suspect this is like identifying a duck.. if it walks like a duck and quacks like a duck..it's a duck.

If you could buy all the units in your building, then tear down the building and sell the land ...
Dottie57
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Re: Condo land value = 0. Urban legend?

Post by Dottie57 »

I just looked up my county assessment and see hat the kand value for my condo (3 story) is $45000.
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