I bought farm land in 2015. Land is a capital asset, right. I can not depreciate the land, right. How do I enter it? Can I deduct the closing cost?

[Rainman12 · Accepted solution]

You can deduct Taxes and Interest paid at closing, but nothing much else matters until you sell (some items can be added to Basis). You are correct that land itself is a non-depreciable asset, goes on your asset list with no direct effect on taxes. Land Improvements (like watering systems), however, can be depreciable assets ...