topic Purchase tractor in Aug 2023 to manage 2 land lots. How can this be handled in my 2023 tax returns in Get your taxes done using TurboTax

Purchase tractor in Aug 2023 to manage 2 land lots. How can this be handled in my 2023 tax returns

amyonghwee — Thu, 07 Sep 2023 23:12:32 GMT

I have vacant land lots bought in 2017 and change ownership to a LLC in Mar 2023. Last month I bought a used 2001 tractor from a private seller to help to manage the land. Since the land is vacant, there is no income. Can anyone advise on how I should handle this for my 2023 tax return?

Re: Purchase tractor in Aug 2023 to manage 2 land lots. How can this be handled in my 2023 tax returns

Anonymous_ — Fri, 08 Sep 2023 01:41:52 GMT

You're probably not going to be able to deduct anything related to the tractor if you own the lots and they're not leased (i.e., no income).

Land is typically investment property and you have an investment expense which, after tax reform, is not deductible.