Is a cost of property improvements such as this deductible?

[isaoyama]

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?

[DavidD66 · Accepted solution]

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. 

[isaoyama]

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