No, you don't have to report the acquisition of land on your tax return; but you can deduct property tax paid on it and your loan interest:
Property tax data entry:
- Federal Taxes
- Deductions & Credits
- Your Home
- Property Taxes - enter property tax paid on land in Other Property field
You can also deduct
interest on land that you purchased for investment. It is deductible as investment expenses limited to the investor's net investment income
for the year. Any excess interest not deducted in the current year is carried
over to future years.
- Federal Taxes
- Deductions & Credits
- Retirement and Investments
- Select Investment
Interest Expenses
