Submitted By: someone
Answered: June 1, 2022 2:44 am

I own a parcel of vacant land held for investment. Can I deduct the real estate taxes?

You may be able to deduct the property taxes on vacant land held for investment, but you must itemize personal deductions to do so. These taxes are not subject to the limitation on state and local taxes, which include real estate taxes on personal use property (e.g., your personal residence). Note: Different rules apply to individuals who are dealers in property.

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Tax Glossary

Passive activity loss rules

Rules that limit the deduction of losses from passive activities to income from other passive activities. Passive activities include investment rental operations or businesses in which you do not materially participate.

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