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isaoyama
Level 1

Is a cost of property improvements such as this deductible?

I recently purchased an undeveloped land and installed an electric power service (including underground power lines, junction boxes, etc.). Is the cost of property improvements such as this deductible?

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Accepted Solutions
DavidD66
Employee Tax Expert

Is a cost of property improvements such as this deductible?

No, those costs are not tax deductible.  Instead, they are added to your cost basis and will reduce any gain (or increase a loss) upon disposal of the property.  If you develop the property instead of selling it, those costs could be capitalized and depreciated. 

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DavidD66
Employee Tax Expert

Is a cost of property improvements such as this deductible?

No, those costs are not tax deductible.  Instead, they are added to your cost basis and will reduce any gain (or increase a loss) upon disposal of the property.  If you develop the property instead of selling it, those costs could be capitalized and depreciated. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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isaoyama
Level 1

Is a cost of property improvements such as this deductible?

Good to know. Thank you for answering my question, DavidD66.

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