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Tax Law (Questions About Taxes)/Expenses on Undevleloped Land


I am a partner in a general partnership that owns a parcel of undeveloped land. We recently received a citation from the City to clean up debris on the property that others have dumped on it. We have not developed the property in any way since we purchased it. Can the cleanup expenses be recorded as a general expense of the partnership and allocated out to partners as a partership loss via K1s or do these expenses have either be capitalized or passed through to partners where the partners have to report the expenses under Misc Deductions on Sched A - if I report under Sched A, I will lose deduction due to caps on Misc deductions. So I want to simply report the expenses such that the partnership loss is allocated out and can be used to offset other K1 income.  Same question re property taxes - can they be allocated out as loss or do they have to be allocated to partners as taxes that the partners report under Taxes on Sched A - thx very much

Sorry for delay.
I am building a new house on top of regular tax season and just forgot to Check your inquiry

Yes. It (clean up _AND_ propert tax) should be current activity and not capitalized.

Ps I'd be happy to do your retuens and or the 1065 for the partnership


Tax Law (Questions About Taxes)

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Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).


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