Question

My wife and I own a residential lot that we purchased for investment. May we deduct the carrying costs in our Schedule C? (C.C., Burtonsville, Md.)

Answer

No. This lot is an investment. It is not a business. Businesses are reported on Schedule C.

On this investment lot, you have choices: You may capitalize some or all of the carrying costs, or you may expense them. Here’s how the choices work for interest, taxes, and other carrying ... Log in to view full article.