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Is a cost of property improvements such as this deductible?

Forum|Forum|5 years ago
February 28, 2021
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I recently purchased an undeveloped land and installed an electric power service (including underground power lines, junction boxes, etc.). Is the cost of property improvements such as this deductible?

Best answer by DavidD66

No, those costs are not tax deductible. Instead, they are added to your cost basis and will reduce any gain (or increase a loss) upon disposal of the property. If you develop the property instead of selling it, those costs could be capitalized and depreciated.

D

DavidD66Answer

No, those costs are not tax deductible. Instead, they are added to your cost basis and will reduce any gain (or increase a loss) upon disposal of the property. If you develop the property instead of selling it, those costs could be capitalized and depreciated.

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