Depreciation (How to assign values to land vs. improvements)?

A real quick way to benchmark the value of the improvements as a percentage of the total property value is to look at the tax assessment which is usually broken down into improved value and land value.

Thanks Mike.
So in a state where taxes are reassessed upon a sale:
The 2008 tax bill shows total assessed value = $10M, $4M land, $6M improvements.
So a 60/40 ratio, improvements to land.
I buy the property for $15M, so new assessed value is based on the $15M, for example. Should I still use the 60/40 ratio to split out the land value vs improvements?

If you purchase the property for $15M, yes you can apply the 60/40 ratio with nearly no problem. However, if you feel the improvement is valued HIGHER than 60%, you can conduct an appraisal and make your case with the tax assessor to see if they will raise it higher. The appraisal won't be cheap, but it could be worth the effort. I would recommend contacting the tax assessor and ask him/her what steps are necessary to apply for the change.

Previous answers were correct. I would use the assessor's estimates as a good place to start. If you move forward with the purchase it could be in your best interest to take a look at cost segregation to make sure you are getting the most out of your depreciation.

40%??