Do you own a vacant lot or other unproductive lands?

If the answer is “Yes,” it’s very likely you’ll need new strategies for tax years 2019 through 2025. You might even need to consider making different investments!

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

Three ways Meese Khan, LLP can assist your needs:

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 are deductible as a miscellaneous itemized deductions before the TCJA disallowed them?

2. We’ll tell you how to handle the interest paid on the vacant lot or unproductive land.  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?

3.  We will cover other important topics too, like:

  • 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!

Want to understand how to deal with the new TCJA provisions and reap the best tax benefits? Contact Meese Khan, LLP today for a consultation.

Phone: 623 935 1005