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We bought property this year and put in a new septic and water meter. can i claim those costs?
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We bought property this year and put in a new septic and water meter. can i claim those costs?
It depends on whether the property was rental, investment or personal residence. Either way, you cannot use the costs as "expenses" this year. If it is rental property, you can use the depreciation deduction.
For rental property, you will add the cost of the improvements to the cost of the property and depreciate the entire cost of the structures and improvements but not the land. Click on this link for more information: Rental Property.
If the property is investment or personal residence, you add the costs of improvements to the basis (cost). This may lower your taxable income when you sell the property.
Here are more details about selling your personal residence.
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