My wife inherited some vacant land from her father which she is holding as an investment. Can she deduct the real estate taxes paid for this land on Schedule A ? Or would she use schedule E ? There were also some legal fees associated with this land that I don't think would be deductible on Schedule A but might be on Schedule E.
Steve
If it is investment property, the expenses are deductible on Sch A, subject to the various limitiations (investment interest, 2% floor on misc deductions etc)
Only if its rental property do you use sch E
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-----> real address on hobokeni or hobokenx
Certainly.
As previously noted, Schedule E is for rental property.
I'd classify those as an investment expense, a miscellaneous itemized deduction on Schedule A. There might be a way to capitalize them, but that's beyond my pay grade.
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