This is a property on over 2 acres. I'd like to buy it, split the property and rent out the existing house. Then build myself a new house on the other portion of the property.
How would I determine the cost basis of the existing house (and the split portion of land, I guess)? I would be nice to maximize the "cost" of the rental property to maximize the depreciation/avoid additional capital gains on it when sold.
Location: Colorado, USA