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Vacant Unimproved Land - Deductible Expenses

I purchased an inexpensive unimproved city lot in another town for cash.

My hope was to be able to deduct mileage and lot maintenance expenses associated with the management of the parcel on my personal taxes.

IRS Publication 550 appears to list the rules for investments of this type and indicates I can NOT dedcut expenses unless they exceed 2% of my adjusted gross income - which they don't. Am I analyzing this correctly?

I'm assuming I can at least deduct the real estate taxes regardless. Is that correct?

I itemize since I have other property that generates a loss for tax purposes.

MD

Reply to
MDinDestin
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Yes. Real estate taxes are deductible in the taxes section of Schedule A.

Huh?

Reply to
Bill Brown

(snipped....)

Could you perhaps expand on this? What type of expenses generate the loss and how are they reported?

ChEAr$, Harlan Lunsford, EA n LA

Reply to
Harlan Lunsford

If it's investment property, can he deduct mortgage interest?

Stu

Reply to
Stuart Bronstein

A rhetorical question, eh Stu?

If this mortgage interest is investment interest and he has sufficient investment type income, then yes, to the extent of that income.

(grin)

ChEAr$, Harlan Lunsford, EA n LA

Reply to
Harlan Lunsford

Well, I'm a rhetorical kind of guy.

Smile when you say that, Pilgrim.

Thanks.

Stu

Reply to
Stuart Bronstein

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