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Mzjwest
New Member

We purchased property that needed to be removed from open space and paid $6K. Can I deduct this?

 
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MichaelMc
New Member

We purchased property that needed to be removed from open space and paid $6K. Can I deduct this?

No.

The costs of acquisition of real estate, including zoning fees, become part of its cost basis and are offset against selling price to determine capital gain (loss) when you eventually sell the property. Such costs are not deductible as expenses at the time of acquisition.

For more information, please refer to IRS Pub. 551 Basis of Assets


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MichaelMc
New Member

We purchased property that needed to be removed from open space and paid $6K. Can I deduct this?

No.

The costs of acquisition of real estate, including zoning fees, become part of its cost basis and are offset against selling price to determine capital gain (loss) when you eventually sell the property. Such costs are not deductible as expenses at the time of acquisition.

For more information, please refer to IRS Pub. 551 Basis of Assets


View solution in original post

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