Land is not depreciable so the cost redovery deduction would be limited to the apt building in this example.
$6m - $.7m = $5.3m
$5.3m is the depreciable asset amount.
Simply divide the cost of the asset by the useful lifespan of the asset. We'll just use 10 years for example purposes.
$5.3m / 10 yrs = $530k
That is the first year deduction.