Building an investment prop. Haven't broken ground, but have significant expenses paid in 2022. Building permit, septic design, building design, soils,ect. Can I deduct?

[yingd777]

Don't know if I can count these as expenses now, or if they wrap into the whole project and depreciated once complete.  Thanks!!

[MarilynG1]

Yes, construction costs can be added to the Property Cost Basis and depreciated once complete. 

If you have a construction loan, however, you can deduct the interest as an Investment Interest Expense on Schedule A.

Here's more info on Construction Costs.

@yingd777