Yes, you are correct that you can't deduct or depreciate the cost of your well.
If this is your home and not a business or rental property, you would add the cost of the well to the 'Cost Basis' of your home, since it adds to the value of property.
For example if the current cost basis of your home is 250K (price you paid for it), and the well cost 20K, the cost basis of your home is now 270K.
You can add to your home's cost basis the value of any improvement you do that increases the value of the property.
Click this link for more info on Cost Basis.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
