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Can anyone advise if I sold cabin property for private use, can I use land improvements for a write-off and if so where do I enter it on Turbo Tax?

 
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3 Replies
ThomasM125
Expert Alumni

Can anyone advise if I sold cabin property for private use, can I use land improvements for a write-off and if so where do I enter it on Turbo Tax?

I think what you mean is that you have a vacation cabin that you sold and you want to know if you can deduct the cost of the land associated with it. If so, you can deduct the  cost of the land against the sale price to arrive at a gain or loss. If you have a gain you will need to report that on your tax return as income.

 

If you sell the property at a loss, you cannot deduct it if you used the property for personal purposes, you could only deduct the loss if you purchased the property as an investment or rented it out, with limited personal use.

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Can anyone advise if I sold cabin property for private use, can I use land improvements for a write-off and if so where do I enter it on Turbo Tax?

No, not quit what I was asking.  I purchased the land (cabin) in 2001 and just sold the land (cabin) in 2020.  the difference was $17500 (gain).  But in 2017 I learned I had no legal access to the property so I had to pay roughly $9000 to get a new road (easement/wet land delineation/survey/construction) .  Is that land improvement (new road expense) a write off and if so where do I enter it? 

HelenC12
Expert Alumni

Can anyone advise if I sold cabin property for private use, can I use land improvements for a write-off and if so where do I enter it on Turbo Tax?

No, the new road is an improvement not a "write-off". Add the $9,000 to the cost basis of the land (cabin). In essence, your gain of $17,500 will be reduced by the $9,000 when you enter your adjusted cost basis of the land (cabin) versus your sales proceeds. 

 

To enter the sale of your second home, see Where do I enter the sale of a second home, an inherited home, or land on my 2020 taxes?

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