Destiny purchased the warehouse for $200,000. Destiny paid $20,000 as a down payment and financed the remaining $180,000. The tax appraisal showed the tax assessment for the property to be $125,000. The building was assessed at $93,750 and the land was assessed at $31,250. Legal fees incurred to purchase the property were $3,200. Chance purchased the home for $200,000, and it had a fair market value in 2019 of $200,000. The tax appraisal for the entire property was $150,000. The building was assessed at $112,500 and the land was assessed at $37,500. The home office is 500 square feet while the house is 2000 sq. ft total.For both of these properties, you should allocate the purchase price or fair market value by the tax assessment ratio to find the amount of the purchase price/fair market value that corresponds to the building and the land. Remember that land is not depreciable. Normally, it would be included in the depreciation schedule and not depreciated. You should not include the land in this schedule.