Question

I bought land in 2005 and paid interest for 9 years. Do I include this interest as part of my cost basis?

Forum|Forum|4 years ago
January 25, 2022
1 reply
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Can I include the interest paid on my land purchase as part of my cost basis?

TurboTax Premier Online

Employee

No. Interest paid on real estate is deductible on the SCH A as an itemized deduction each and every year you pay it. But now-a-days it's not that common for itemized deductions to exceed the standard deduction. So it really makes no difference in your tax liability for many.

But no. your cost basis in the property is what you paid for it when you originally purchased it all those years ago, as identified in the sales contract you signed at the time.