Is it basis?

[abby]

If, sometime after purchase, there is a property line dispute and you pay for surveying services would it add to the basis of the property?

This is a personal residence.

Thanks very much

[BOB W]

I would..................

[skhyatt]

So would I................

[Jiggers]

Surveying

Surveying costs should be added to basis, whether for personal or business.

[Golden Rocket]

Is it deductible?

Is it a bird? Is it a plane? No, it's BASIS!!!!

The only serious question is whether this can be currently deductible, or whether it must be capitalized as basis. It cannot be both.

Normally, surveying is part of the historical cost of the land (basis). If the surveying was part of a defense of production of income, it might qualify for current deductibility. I would look for a court case or a ruling.

[abby]

Thanks to all

I appreciate your responses -

in this case there is no possibility of current deductibility - it happened in 1989 - but the lucky guy has a big gain on the sale, so I'm filtering through all the $$ put in since original purchase.

Again, much appreciated.

[Barnett]

Basis or What

No contest, private or other , the cost is added to the basis.
Definitely.

[Black Bart]

Dear Jiggers,

...the cost is added to the basis. Definitely.

I regret to inform you that, due to Barn's masterful air of supreme confidence, I feel compelled to hereinafter refer all my deeper questions to him rather than to you as I had previously promised. I implore you to accept my apologies, condolences, etc. and ask that you not take it personally.

"It's nothing personal, it's just business." -- Al Pacino, The Godfather.

P.S. Barn -- Are you carrying more than one bullet?
P.P.S. Just joshin' you a tad. Nice to have you and welcome to the board -- BB.

[Barnett]

Dear Mr Bart

thanks for your eloquent rendition of the song "Oh Lord its hard to be humble , but your perfect in every way."
I awoke yesterday morning to get an early brekka , you know cereal , eggs bacon , instead I woke my Wife , she struggled a bit , and then .......... Ah gee Honey look at the time it's 11 o'clock i'll be late for work.
I feel I owe Mr Jiggers an apology , had I have checked the postings before giving my professional ? educated guess , you could have saved Mr Jiggers the embrassment of giving me your deeper questions and thus taking them away from poor Mr Jiggers, shame on you!.You know two great minds think alike , I notice even you took the time to reply.does that make you an accessory after the fact.
By the way does Mr Pacino work for you , or is he a tax preparer in your home town , just wondering.!
For those uninitiated , including Mr Bart tax law and practice does not exist in isolation , but is a portion of the whole , economic and accounting principles is the basis upon which tax law is formulated, the law spells out income ,deductions exempt , etc but applies accounting principles to the law, to get to the base The IRS have their CPA;s ,Degrees, Masters, PHd's, Attorneys , they have the loaded gun encompassing the law , The tax court is a good starting point, It is the duty of all preparers to seek accounting qualifications BEFORE attempting to prepare anyones income tax return , then we would all be in the same boat , and not take exception at soneones innocent attempt at stripping away the jargon to get to the basics.
Have a good day.

[abby]

since I started it...

Glad to have all opinions, concise, extended or otherwise - and always welcome the musings of BB -

a small correction - the quote is

"it's not personal..." being the wife of a writer, I know how these small differences can matter.

And speaking of personal, as long as I have your ear, BB - did you ever get the Private Message I sent awhile back - I haven't figured out how to see if mail has been received or read.

Happy October 15 to all.