@Opus 17 wrote:
All real estate taxes you pay on any land you own can be deducted as an itemized deduction on schedule A, but subject to the $10,000 cap on all state and local taxes.
If you are holding land for investment purposes, you can generally only deduct your maintenance costs against income the land produces. Since the land is vacant and not producing income, you may have the option of capitalizing your costs. .
I should add here that if you are holding the land for personal reasons (such as to build a vacation home in the future) then your carrying expenses may not be capitalized. You can only deduct the real estate taxes up to the cap.
