AboutGlenn D Schnabel Expertise I can answer most federal individual income tax questions.
I can not provide legal advise.
Experience I have worked for a CPA firm for over 11 years.
I have worked in private as well as government
I have recently been running a tax preparation office, mainly focusing on
individual income taxes
Organizations I have been affiliated with managing condo associations and as a member of a coalition to educate condo owners as to their rights and responsibilities.
Education/Credentials I have my B.S.B.A in Business Administration . Concentration in Accounting
I have gone to yearly tax seminars and have tried to keep up with the
evolving tax changes
Awards and Honors Over my years I have received local awards for contributions to worthy
organizations.
Past/Present Clients This, of course remains confidential
Expert: Glenn D Schnabel Date: 7/6/2008 Subject: interest paid on undeveloped land
Question My husband and I are buying land on which to retire in a few years. This is undeveloped land ie: no sewer, water, buildings, etc. Is the interest we are paying on the loan tax deductible on Schedule A?
Answer Emma,
Thank you for your question. Usually when you have undeveloped land , it all has to do with what you plan on doing with it. If you want to build a home on it, you may consider capitalizing the interest (IRC § 263A),
whereby the interest is carried as a cost until the house is occupied.
In this case you would capitalize the interest and the taxes on the property.
