Vacant Unimproved Land - Deductible Expenses

MDinDestin · Joined: 20 Feb 2008 Posts: 2

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

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Archived from group: misc>taxes>moderated

Bill Brown · Joined: 25 Aug 2007 Posts: 104

On Feb 23, 9:48 am, MDinDestin wrote:

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

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

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

Huh?

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Harlan Lunsford · Joined: 25 Aug 2007 Posts: 790

MDinDestin wrote:

(snipped....)
>
> I itemize since I have other property that generates a loss for tax
> purposes.

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

ChEAr$,
Harlan Lunsford, EA n LA

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Stuart Bronstein · Joined: 25 Aug 2007 Posts: 561

Harlan Lunsford wrote:
> MDinDestin wrote:
>
>>
>> I itemize since I have other property that generates a loss for tax
>> purposes.
>
> Could you perhaps expand on this? What type of expenses generate the
> loss and how are they reported?

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

Stu

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Harlan Lunsford · Joined: 25 Aug 2007 Posts: 790

Stuart Bronstein wrote:
> Harlan Lunsford wrote:
>> MDinDestin wrote:
>>
>>> I itemize since I have other property that generates a loss for tax
>>> purposes.
>> Could you perhaps expand on this? What type of expenses generate the
>> loss and how are they reported?
>
> If it's investment property, can he deduct mortgage interest?

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

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Stuart Bronstein · Joined: 25 Aug 2007 Posts: 561

Harlan Lunsford wrote:
> Stuart Bronstein wrote:
>>
>> If it's investment property, can he deduct mortgage interest?
>
> A rhetorical question, eh Stu?

Well, I'm a rhetorical kind of guy.

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

Smile when you say that, Pilgrim.

> (grin)

Thanks.

Stu

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