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+--- Thread: Tax write off for land purchase? (/showthread.php?tid=17322)
Tax write off for land purchase? - Thronester - 06-20-2016
Aloha! Long time lurker, first time poster. I've recently purchased an acre in lower hpp and am curious if anyone has any info on possible tax write offs for such a purchase. I don't plan on building anything in the next few years but may improve the lot with a driveway and house pad. I don't own a house so when the house is finished it will be my first home. I thought I would try here first before I spoke with an accountant. This forum has been such a huge help in answering any question I've had in regards to my land purchase I figured it was worth a shot. Mahalo!
Alex
RE: Tax write off for land purchase? - kalakoa - 06-21-2016
Far as I can tell, most "favorable" tax postures require that you actually live on the land, or have a house which can be claimed as a "second home".
The other possibility is an ag lease (with the lessor responsible for property tax payments) but this might require some improvements (eg, rip-n-roll + perimeter fence to make a pasture) and could end up being an encumberance for the actual house project.
Property taxes on a small unimproved lot aren't that much to begin with, so it's probably more trouble than it's worth to avoid paying them -- mandatory HPP dues are going to be a bigger expense.
RE: Tax write off for land purchase? - terracore - 06-24-2016
I can't remember the exact tax benefits nor could I quote the tax code but circa 2011 our CPA did apply some tax deductions on exactly what you are talking about. He also mentioned that our travel costs could have been included if we hadn't paid for our trip with airline miles etc.
Federal tax code is some 80,000 pages and is so complicated only computers and 3 humans understand it. Whatever you pay to consult a professional will be worth it (my experience).
RE: Tax write off for land purchase? - Thronester - 06-27-2016
Thank you both for your insight as well as your time to respond to my post!
RE: Tax write off for land purchase? - vphawk - 06-27-2016
quote:
Originally posted by terracore
[br our CPA
Is that CPA still around? If so, would you mind sharing his name?
RE: Tax write off for land purchase? - terracore - 06-28-2016
I don't know if he is still around- we lived in a different state at the time.