starbuck100701
New Member

We built (now live in) a barn with a ~700 sq ft living space on raw land. What improvement expenses (including establishment of electricity & water) are deductible?

We purchased 50 undeveloped acres 2015 and have a mortgage on the land.  At the beginning of 2017, this was raw land with no utilities, and no access.  We brush-hoged, built a driveway, then began construction early 2017.  We began living at this location in July 2017.  All construction and land improvement costs (aprox $160,000) were paid for out of pocket.  This barn is now our residence. 

Are any of the expenses for improvements and management to the land deductible / depreciable?

Thank you.