Buying land and using tax write off

[elliscountyhog]

For you guys that own buisnesses and have a hefty tax penalty at the end of the year. Do you know if any tax advantage or write offs that could be used for purchasing land? Our current cpa seems to be against it in anyway but I hear people using the land for company benefits and employment entertainment, etc. thanks

[gingib]

following.....

[Radar]

I went thru this three years ago. NO ! My CPA is straight up and told me that. I bought it anyway.

[elliscountyhog]

I went thru this three years ago. NO ! My CPA is straight up and told me that. I bought it anyway.

Kinda what we are getting too. I mean I understand the cost not offsetting the tax amount but that's not what I am after. Just wondering what can be used!

[JTCowpoke]

I think the biggest problem is that the land cannot be depreciated on your taxes like buying farm equipment can. Farms don't wear out so you don't get any tax advantage to buying it. You can write off the interest paid on the loan though.

I am no CPA but I think this is what my CPA told me years ago.

[Codie]

just owning land won't do much for you, however losing your butt in the cattle market will "help" out though

[BigWes]

This is how I understand it to work - You can't depreciate the land, but if the business buys the land on a mortgage, it could expense the interest. Also, any equipment you buy to maintain the land could be depreciated. Now, if you just want to buy land, and then invite "customers" out for "entertainment" and you try to deduct the cost of the land, I guess you could try it. Your CPA would still probably not want to do it and you better have that tax money ready if you get audited.

Good luck on buying your new hunting property...... I mean client entertainmet venue.

[MQ32Shooter]

If you want write-offs, you got to spend the money first before you get the write off. Now having said that, I got land and I do get some write offs, but I got to spend it first before I get to write off $.25 on the dollar.

[DeadEyeB]

Land can be a big exemption for sales tax, but you have to make money farming with said land. Lots of stuff can be bought tax exempt though if you have a working farm. The deal is you have to make a profit 3 of the first 5 years and have to be producing agriculture.

Otherwise no owning land is a waste if you are a business. If you have cash to drop on land you should just put that money in the market and you'd be better for it.

If you want to use it for taking clients hunting and stuff you can only write off certain things. Like drinks, food, other travel like expenses.

not the land itself though.

[Texans42]

If you want write-offs, you got to spend the money first before you get the write off. Now having said that, I got land and I do get some write offs, but I got to spend it first before I get to write off $.25 on the dollar.

Pretty much sums it up, most ag write offs are depreciation write offs, but none the less it lowers your taxable income.

[Radar]

If you want write-offs, you got to spend the money first before you get the write off. Now having said that, I got land and I do get some write offs, but I got to spend it first before I get to write off $.25 on the dollar.

I think the OP wants to use the purchase of the land as a write off thru his business. If its recreational land he cant write off or depreciate equipment either.

[elliscountyhog]

Land will not be used as Ag or farm land. It would strictly be used as hunting. Taking clients and employees and family. Thanks for the info.

[Muddy Bud]

What if the land was bought in cash. Can you claim it as a major purchase for that year only? Or work done on the property, roads electricity installed etc.

[Kdog]

Can you buy it personally and lease it back to the company?

I personally don't like playing games with the IRS. I think usually catches up to people.

[Bumpy]

Last few years was hell to get into the cattle business