Rental on vacant land is less than property tax I have a 1/4 share in inherited vacant land out of state. The taxes on the property exceed the rental income. My co-owners are showing the net loss as property tax (rental income minus tax) on their Schedule A. From what I can determine, since rental income is involved, even though there is a loss, I am compelled to use Schedule E and cannot deduct the loss either in item 17 of the 1040 or as part of my itemized deductions on Schedule A. If the property is ever sold, my thinking is that I can factor in the yearly losses to determine the profit on the sale. Please help as this has me totally confused. Many thanks. |