Can I right off down payment money on land I bought? Didn't go through a bank. Went through a lawyer for the transaction and purchase of land

[christinatemolet]

Do I need need legal paperwork from seller?

[MichaelMc · Accepted solution]

The purchase of land is not an expense; it is an investment. Neither the down payment nor any other part of the purchase price would be a tax-deductible expense. These amounts form the tax basis for the property and will determine whether you have a gain or loss when the land is eventually sold.