AmyC
Expert Alumni

Deductions & credits

The purchase of land in itself is not a reportable event. Land is not depreciated. Any mortgage interest would not be deductible at this time.

 

The income you generate from renting out the land will be reported. You might be reporting the rental income on Sch E. See What is Form 4835: Farm Rental Income and Expenses to help determine which form you will be using.

 

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