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Deductions & credits
Q. Can I write off:
- the amount I paid for the land?
- the amount I paid to the construction company?
A. No. More accurately: not this year. The cost of land and the cost to build your "asset" are capital expenditures and become your cost basis for when you sell the property in the future. The house is depreciated (written off) over the next 27.5 years (assuming your "business use" is as a rental). Land is not depreciable.
‎April 10, 2021
4:06 AM