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April 14, 2024
Question

How do I deduct investment expenses after the sale required by contract?

  • April 14, 2024
  • 1 reply
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We sold an investment property (raw land) in 2022.  Part of the sales contract was replacing a culvert, which could not be done until the following year, at an expense of $30k.  How do I write this off?  The sale happened in 2022, the expense happened in 2023.

    1 reply

    April 16, 2024

    Since the sale was in 2022 then it needs to be reported in 2022.  You can go back and amend that return to add $30K to your basis for the land to reduce your gain on the sale.  

     

    @toodeep1 

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