Rental house damaged by fire declared by city as not habitable. City requires asbestos removal prior permit for demolition. I know that demolition cost is added to land basis. Is the required asbestos removal deductible or must it too be capitalized. The City will not provide a permit to demolish until the building is rendered safe of hazardous materials.
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That is also capitalized into the cost of the land ... it is part of the demolition process.
That is also capitalized into the cost of the land ... it is part of the demolition process.
In your case, remediation costs are not treated any differently than your demolition costs. The total of both are added to the cost basis of the land.
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