TAX Game Changer - Vacant Land Deductions

Dated: 12/20/2019

Views: 120

TCJA Changes Vacant Land Tax Strategies

Do you own a vacant lot or other unproductive lands?

 First of all let me say, I am not an accountant - so this is for informational purposes only. Be sure to consult with your tax professional.

You need to know that the Tax Cuts and Jobs Act (TCJA) has impacted every cost you incur to carry that vacant lot or land investment.


You likely need new strategies, at least for tax years 2018 through 2025. You may even need different investments.


So the questions for you are: what vacant land costs do you have, what tax problems do they face, and what should you do to get the best tax benefits?




The vacant lot and unproductive land are investments. The TCJA gives you three new and/or altered tax law situations every year from now through 2025 that you need to consider:



Capitalize the expenses and add them to the cost of the vacant lot or land.1


Deduct the interest and taxes as itemized deductions.


Say goodbye to those expenses that were deductible as miscellaneous itemized deductions before the TCJA disallowed them.

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Dwight Cook

BRILLIANT Real Estate Team, Technology Driven but Customer Focused. Let's Talk!....

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