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January 7, 2025
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Can I deduct well installation cost on Vacant land sale?

  • January 7, 2025
  • 1 reply
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I bought a piece of land 10 years ago and spent 10k having a well drilled.   I had to sell it this year due to emergency.  Can I deduct cost of well and an outbuilding I had installed on land?

    Best answer by DoninGA

    You can add the cost of the well to the Adjusted Basis of the property when it is sold.

    1 reply

    DoninGA
    DoninGAAnswer
    Employee
    January 7, 2025

    You can add the cost of the well to the Adjusted Basis of the property when it is sold.