I have 2 small parcels of vacant land that I purchased as an investment. Can I deduct the property tax, loan interest, property owners fees and utility fees on these proeprties?
Vacant Land Deductions
Mar 25, 2008
5 Replies
What kind of utility fees would you have on vacant land?
You can always deduct real or personal property tax based on the value of property on your Schedule A.
The answer to your loan interest question requires more information.
-Mark Bole
In Clarke County Georgia......Storm Water Runoff Fee.....no kidding.
Property tax: Schedule A taxes
Interest: Schedule A investment interest
Fees: Unless someone can come up with a way to capitalize them, Schedule A investment expense.
If there is an IRC 266 election on this property, then all taxes, interest, and probably all fees on this vacant land could be capitalized, right?. The storm water fee sounds like a carrying charge.
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replying to Mark Bole, Paul True wrote: An example would be payment to irrigation district.
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