Carl
Level 15

Deductions & credits

No. What you paid for is called property improvements. You don't deduct it from anything at all. You "ADD" it to your cost basis. So if you paid $10,000 for the land, and then at any time during your ownership you 'improved" the land (by clearing it maybe) and it cost your $1000 to do that, your cost basis (what you paid for the land) is now $11,000.