Quick question for any of you tax-experienced folks out there. My wife and I own an undeveloped lot (2 acres @ about $70K value) in our neighborhood that we're just sitting on as an investment. Does the property tax we pay on that count toward the $10K limit for SALT deductions on our federal taxes? It's not in our LLC. Does that matter, or is the rule that taxes on an investment property--even if it's not being rented--don't count toward the $10K max? Thanks!
For investment property they don’t count toward the $10k limit.
@Lance Lvovsky Thanks! Doesn't matter that it's undeveloped (not rented) or not in an LLC, then?
It depends on what you purchased the undeveloped land for.
Did you buy it for investment purposes? Did you buy it to build a personal residence on it?
@Basit Siddiqi We originally bought it build a personal residence on. Then we bought one we liked better and built on it. Never sold the first one but held onto it because we thought it would go up. It did.