Discussion:Worthless Land Deductible?
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Basic Tax Questions --> Worthless Land Deductible?
Discussion Forum Index --> Tax Questions --> Worthless Land Deductible?
| 13 February 2008 | |
| I have MI client who has land in PA that has been held for several decades. The land in PA is worthless based on the restrictions placed on the land and the client is planning on letting the county foreclose on the property since he is no longer paying property taxes.
My question is this? Is worthless land similar to worthless stock losses? My thought was that he would need to wait until the land was repossessed to take any loss, but could he do it sooner? Input is much appreciated. | |
| February 13, 2008 | |
| Does PA base the ptax rolls on value of the land? Did the ptax accrue prior to the restrictions being placed? What are the restrictions and what makes you think the land is worthless? | |
| 13 February 2008 | |
| Not 100% on the first question, but I'm pretty sure the property taxes are assessed based on value of the land, similar to MI laws. The property tax has been paid every year, up until now. Not sure when the restrictions came timewise, but based on an area river the land is considered to be in a flood plain and is unsaleable. | |
| 13 February 2008 | |
| If County takes for unpaid taxes that is a sale. Might check into donation to NRDC. | |
| 13 February 2008 | |
| I had something like this happen to a client. County took a huge strip of land that belonged to this dairy farmer, and installed high voltage electric transmission lines. Based on it being unsafe for the herd to graze under the lines, we were able to qualify this loss of previously valuable pasture as a casualty loss. | |
To join in on this discussion, you must first
log in.
