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first_time1
New Member

Can I deduct spending(State&Local fees/land improvement,etc.) on land that I purchased, subdivided and sold as raw land?Purchase in 2008. Last parcel sold in 2018.

Examples:  State&Local requirements and fees, roads, electric and water requirements, etc.
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Carl
Level 15

Can I deduct spending(State&Local fees/land improvement,etc.) on land that I purchased, subdivided and sold as raw land?Purchase in 2008. Last parcel sold in 2018.

No. What you paid for is called property improvements. You don't deduct it from anything at all. You "ADD" it to your cost basis. So if you paid $10,000 for the land, and then at any time during your ownership you 'improved" the land (by clearing it maybe) and it cost your $1000 to do that, your cost basis (what you paid for the land) is now $11,000.

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1 Reply
Carl
Level 15

Can I deduct spending(State&Local fees/land improvement,etc.) on land that I purchased, subdivided and sold as raw land?Purchase in 2008. Last parcel sold in 2018.

No. What you paid for is called property improvements. You don't deduct it from anything at all. You "ADD" it to your cost basis. So if you paid $10,000 for the land, and then at any time during your ownership you 'improved" the land (by clearing it maybe) and it cost your $1000 to do that, your cost basis (what you paid for the land) is now $11,000.

View solution in original post

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