Announcement

Collapse
No announcement yet.

Land held for investement...where to deduct taxes, interest etc. if no Sch A?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Land held for investement...where to deduct taxes, interest etc. if no Sch A?

    TP purchased unimproved land/property. TP pays property taxes, mortgage interest, insurance, landscape maintenance etc. relating to maintaining the land/property BUT does NOT file a Sch A thus takes the Std deduction. I read somewhere that the TP could track TP's purchase price plus including all related fees, prop taxes, interest etc. on a spreadsheet then if TP sells land w/o any improvements, the TP that tax year can add to his purchase price, the accumulated property taxes, mortgage interest, insurance, landscape maintenance etc. to calculate cost basis. Sound correct?

    #2
    Yes, BUT the taxpayer needs to make an election every year to do that.

    Comment


      #3
      Bill

      Originally posted by TaxGuyBill View Post
      Yes, BUT the taxpayer needs to make an election every year to do that.

      https://www.law.cornell.edu/cfr/text/26/1.266-1#b
      Heads up. Moderator told posters not to use links anymore. See moderator post
      Always cite your source for support to defend your opinion

      Comment


        #4
        Yes, to interest, taxes and improvements, including landscaping. However, IMO, regular maintenance such a grass mowing, etc would not come under these categories.

        Comment

        Working...
        X