TurboTax does not support deducting property tax on raw land as Other Taxes on Line 6 of Schedule A. If you want to report a property tax deduction on line 6, you will have to use TurboTax Desktop Software and enter the deduction directly on Schedule A using the Forms view. For information about TurboTax Desktop, see the following; TurboTax® Desktop
You also have the option of adding the property tax and interest expenses you paid to your cost basis. It won't save you any money on your current year tax return, but it will reduce any taxable profit you have when you sell. To do so, you must make an election each year you elect to capitalize some, or all of your interest and tax paid. You must attach a statement to your tax return that says something to the effect of:
For tax year 20XX, the taxpayer is electing to capitalize, rather than deduct, the property tax and mortgage interest in on the property located [give address or description]. This election is made under Code Section 266 and IRS Regulations 1.266-1.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
