Hello,
Sorry if posted to wrong discussion board. But my wife and I are selling a piece of vacant land. We purchased it with the thoughts of building a home. That all fell through with the pandemic. Was cheaper to by a house already built. I am trying to figure out whether land improvements add to the overall value of the property or what can be deducted from the sale of the property or whatever you guys know/answer. I have been trying to find out what I can or can't do.
The land is in a rural area. It needs a septic tank, no city water. The land was not approved for a leach field at the time of purchase. So we spent 20k (has to be specific dirt, so many feet wide, long and deep, its also has to pass the perk test) bringing in dirt and creating a leach field so that we could even build a house on the property.
Land Purchased 2017
Land Appraisal $55,000
Land Purchase Price $50,000
Approved Leach Field Cost $20,000
Land Selling Price $70,000
Thanks for all your help!!
