Q: Can you deduct land restoration expenses as a result of erosion on investment property?
We have investment property as a partnership. The building is situated along a river with a bank roughly 50 feet high. Hurricane Irma caused significant damage to the land and requires $250,000 of dirt to be certain the building doesn't fall into the river.
A: You can typically deduct these expenses through depreciation, meaning you capitalize the expenses because you are creating an asset with a usefull life beyond one year.
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