We purchased 50 undeveloped acres 2015 and have a mortgage on the land. At the beginning of 2017, this was raw land with no utilities, and no access. We brush-hoged, built a driveway, then began construction early 2017. We began living at this location in July 2017. All construction and land improvement costs (aprox $160,000) were paid for out of pocket. This barn is now our residence.
Are any of the expenses for improvements and management to the land deductible / depreciable?
Thank you.
You'll need to sign in or create an account to connect with an expert.
The only thing that would be deductible is your Mortgage Interest, PMI and property taxes. All construction and land costs are just part of your cost basis for your home and are NOT tax deductible as they are personal expenses.
If you ever sell your home, then all of these costs will be deducted from your sales price to decrease your taxable profit.
The only thing that would be deductible is your Mortgage Interest, PMI and property taxes. All construction and land costs are just part of your cost basis for your home and are NOT tax deductible as they are personal expenses.
If you ever sell your home, then all of these costs will be deducted from your sales price to decrease your taxable profit.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
anon30
Level 3
2015trixie
New Member
calderad07
New Member
ahmad-hashem-net
New Member
karlameyer
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.