Tax Law (Questions About Taxes)/1099 PATR


Received a 1099 PATR for land we financed through a land bank.  I see from a previous answer that we do not need to put on our tax return as income.  However, we also received a mortgage interest statement for this land.  The property is still vacant.  Can we deduct this mortgage interest and or property taxes on Sched A?


Thanks for your question.

The property taxes may be deducted, either on Schedule A or the business return (if applicable) . The nature of the investment in the land determines if the interest is deductible.  You are allowed to deduct interest on two residences. If this is purchased with the intent of building a home on it in the immediate future, it is deductible as home mortgage interest. If it is for investment purposes, the interest is deductible if you have offsetting investment income.  Complete Form 4952 to determine if any of it is deductible.  If it is for a business purpose, the interest would be deductible on the business return.

Hope this helps.

John Stancil, CPA

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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