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TCJA Changes Vacant Land Tax Strategies

December 23, 2019

Do you own a vacant lot or other unproductive land?

If the answer is “yes,” it’s very likely you’ll need new strategies for tax years 2018 through 2025. You might even need to consider making different investments!

Why? Because the Tax Cuts and Jobs Act (TCJA) has impacted every cost you incur to carry that vacant lot or unproductive land investment.

Want to understand how to deal with the new TCJA provisions and reap the best tax benefits? Read my new article titled Tax Tips: TCJA Changes Vacant Land Tax Strategies.

Three ways our fact-filled article can help you:

  1. We’ll explain how to make an important decision. Given the changes in the law, there are three scenarios you need to consider.

Should you…

  • Capitalize the expenses and add them to the cost of the vacant lot or land?
  • Deduct the interest and taxes as itemized deductions?
  • Say goodbye to the expenses that were deductible as miscellaneous itemized deductions before the TCJA disallowed them?

All these questions and more will be answered when you read the full article.

  1. We’ll tell you how to handle interest paid on the vacant lot or unproductive land. That interest is either deductible interest (limited to investment income) or it’s capitalized and added to your cost basis of the vacant lot or unproductive land. So ultimately the question is, should you itemize deductions? We’ll explain the best choice for you when you read the full article.
  2. My new article will cover other important topics too, like:
    • Five strategies for paying lower taxes
    • How to handle real-estate taxes on the property
    • Why the TCJA gives you no benefits from insurance costs (even lawn mowing!)
    • Whether you should make the election to capitalize
    • And lots more!

For answers to these and other important questions, read the full article.

Filed Under: Capital Gains, Filing tips, Interest, Investments, Land, Legislation, Tax Planning, Tax Policy

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