February 1, 2022
The Mann Report published an article by Tax Director Joseph Mecagni, about the importance of land allocation when purchasing property, in order to minimize taxes and avoid penalties.
The Mann Report
By Joseph Mecagni, Director, Tax & Business Services
Excerpt:
The problem is that land is not depreciable. The taxpayer is required to allocate the cost of land, using any reasonable method. If examined by the IRS, the burden of proof is on the taxpayer to prove that the allocation method used was reasonable.
