Tax Benefits

Tax-BenefitsWatching the stock market rise and fall can be frustrating to the average investor. It seems that one has so little control of the market's volatility. Sure, you can diversify your holdings, but your return is still subject to political climates and global economic health. One way to avoid such caprices while gaining a little more control over your investment portfolio is to put some of your money into vacant land. Not only will you have a physical asset rather than a paper one, but you can deduct a number of the expenses associated with this type of investment from your income tax return.

Tax benefits of investing in South Carolina land

Vacant land in South Carolina and elsewhere generally doesn't earn any rental income like developed land can. However, that doesn't mean that there are no tax benefits associated with this type of investment. Just a few of the items you can deduct include:

  1. Interest expenses. Like the interest you pay on your home mortgage, you can deduct the interest you pay on money you borrow to purchase land up to the amount of your annual income. Any amount that exceeds your income can be carried over to deduct in future years.
  2. Property taxes. The property taxes you pay on your investment land are also deductible when you itemize your deductions.
  3. Professional fees. The fees charged by lawyers, accountants, real estate brokers and other professionals associated with your land are also deductible.
  4. Travel expenses. If you live more than 50 miles away from your investment land, you can deduct the cost of traveling to the property twice a year to check it and make sure that everything is safe and secure. This can include transportation costs as well as meal and lodging expenses.

To learn more about adding an investment in forestry and/or timber management services to your investment portfolio, contact Henderson & Associates in Newberry, South Carolina. We've been in business for more than 30 years and have helped hundreds of investors like you buy and sell South Carolina timberland while maximizing their returns.

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