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Itemized Deductions Schedule-A


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Old 02-07-2009, 11:42 AM
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Question Closing costs for vacant land purchase

Hi,
I purchased (cash, no loan) a vacant unimproved lot in 2008 as a potential investment. Can I deduct the closing legal and title fees as an investment expense?

Thanks for the help



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Old 02-07-2009, 10:55 PM
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Both the Closing costs and Title Fees on the purchase of vacant land are capitalised and added to the basis (cost) of the vacant land. The closing costs are not deductible and instead they would be used to offset the possible gain on the future sale of the vacant land.

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