I own raw land in Florida, which costs me yearly expense for upkeep, management, etc. It costs me several thousand per year. Can I deduct these expenses?

Forum|Forum|6 years ago
July 5, 2020
2 replies
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Carl

Level 11

Yes and no. It depends.

You need to elaborate on "upkeep and management". What is there to "upkeep" on vacant land? What is there to "manage" on vacant land?

If this raw land is not being utilized in the production of income (such as leasing it out) then the only thing you can deduct as a SCH A itemized deduction each year, is property taxes and mortgage interest. That's it. Nothing else. It's considered "personal use" property, so your upkeep costs (such as grass mowing on a recurring basis) just flat out is not deductible.

Another thing that can affect my earlier comment above, is your intent. What is your intent for this land? Also, when did you purchase it?

Anonymous

i not sure that the interest would qualify for mortgage interest - there is no home on it. It may qualify for investment interest. or if it is being rented as other interest on schedule E. the answer really depends on what it's being used for if anything.

Bees

Level 7

Interesting article that might be helpful.

https://www.nolo.com/legal-encyclopedia/tax-deductions-vacant-lands.html

Disclaimer: Not a tax professional. Information gathered from internet links. Anything dated in June 2019 was posted in prior years and is before the 2019 limits and changes.