- quote -

Obviously it makes sense to hold it as investment property
for the purposes of interest, RE taxes and insurance etc.
It won't be personal property until you convert it to same!
There is no lookback upon such nondisposal actions. And
since there is no depreciation on raw land I don't see how
it would even come up.

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I'm considering buying a lot. If (as is possible, but not
likely) transportation to the area is improved, I'll sell
the lot at a significant profit. Otherwise, I'll build a
house and retire there myself (if transportation to the area
is _not_ improved, it's a lovely area perfect for an
eclectic old guy with a motorcycle).

I'm concerned about the deductibility of the interest. The
easiest way for me to finance the purchase is with a margin
loan on investments, but, if I don't do anything for five
years, then convert from investment to private to build a
house, will my prior deductions become undeductible? If I
mortgage the lot itself (difficult, if not impossible) will
it help any? Would it be enough to throw a cheap but barely
livable trailer on the lot? (What's the minimum legal
definition of a second home that would make the lot itself
deductible?)

Thanks in advance for your consideration,

Martin

--
Martin Golding | When it comes to finances, remember that there are
DoD #236 | no withholding taxes on the wages of sin. (Mae West)

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