Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Apr 6, 2023 11:21:34 AM

Long term Capital Gains on a land property, can I add HOA fees & Property tax from all the years I owned the land added to base cost of the land ?

Sold a piece of land (no structure)last year, can I add HOA fees & Property tax from all the years I owned the land added to base cost of the land ?

0 1 342
1 Best answer
Level 15
Apr 6, 2023 11:30:57 AM


@TEDSTER wrote:

....can I add HOA fees & Property tax from all the years I owned the land added to base cost of the land ?


No. You have to make the election to capitalize carrying costs in the tax year in which they are incurred.

 

See https://www.law.cornell.edu/cfr/text/26/1.266-1

 

Only those expenses which would otherwise be immediately deductible can be capitalized.

1 Replies
Level 15
Apr 6, 2023 11:30:57 AM


@TEDSTER wrote:

....can I add HOA fees & Property tax from all the years I owned the land added to base cost of the land ?


No. You have to make the election to capitalize carrying costs in the tax year in which they are incurred.

 

See https://www.law.cornell.edu/cfr/text/26/1.266-1

 

Only those expenses which would otherwise be immediately deductible can be capitalized.