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Is commercial property purchase tax deductible?

I have opportunity to purchase a piece of land that is zoned commercial property.At first it will be used as parking for my truck and trailer.Future plan is to build a warehouse/repair shop.Is this purchase considered tax deduction,and would I be able to depreciate it?

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Property purchases whether commercial or residential for purposes of renting are handled through a depreciation schedule just like your truck. Be sure to talk to your accountant about this. The IRS will charge you for capital gains when you sell it if you don't use it to purchase an equivalant or more expensive property, also known as a like king exchange. Be sure to depreciate it the IRS will charge taxes on the sale as if you depreciated it even if you didn't.

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Any depreciation schedule for physical property and buildings is 20-25 years, so don't expect big writeoffs.


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