Income Tax Credits for Owning Land

There are more benefits to buying land for sale than you might have heard about. Most people know that you can deduct the interest on their primary residence home mortgage from your federal income tax bill. What you might not know is that you can also get tax credits for owning just the land.

When you are paying a debt on land you own, you will get a 1098 form at the end of the year stating how much money you paid in interest. That figure can be used in figuring your tax credit for owning the land and paying a mortgage on it. If you paid for mortgage insurance, that will also be on the form, and you can deduct that too.

Even if you have paid off the land and get an equity loan on it, the equity loan interest is also tax deductable. Sometimes it is advantageous to borrow on your land rather than take money out of a retirement fund when you need cash, simply because the tax credit works to your advantage so well that it overcomes the interest you have to pay.

There are other forms of tax credits for owning land as well. If you own timberland, there are tax credits you can take that are designed to protect the nation’s forests. You can plant new trees to replace trees you lost, and you can get a reforestation tax credit.

In the farmland sector, there are some tax credits for owning land too. If you own land, you can set aside easements to the government for conservation purposes. If you set aside a portion of your land for conservation uses, you can get a tax credit based on the value of that land. Many farmers like to do this because it gives them some extra cash and costs them little; especially with the new higher rates they are being given. If the amount of credit due them exceeds their tax liability, they are given a cash payment of the difference between the two.

When all is said and done, tax credits offer just one more reason to buy land for sale. You get to own the land, control it, sell it when you want to, and get the profits from the sale. At the same time, you can earn tax credits to offset your individual income tax.

Add Comment

Your email address will not be published. Required fields are marked *

The mark of a really great company is how they handle problems with their customers. I had a problem with property that I purchased recently, unforeseeable for both myself and Lands Sales, and asked if I could switch to another property. The entire process took less than 20 minutes and I was very happy with how it was handled; finally a company in America that cares for its customers.

William T.Kansas City, Missouri

Finally I have found a great company to help me achieve my long term goals and dreams. The staff at Land Sales Company was very helpful, patient, and caring when I called several times for more information about my properties. I feel fortunate to meet people like them who live their lives by strong principles. I would highly recommend Land Sales Company to anybody who has ever dreamed of owning their own property or looking to become wealthy. Thank you again! Please accept my deep appreciation. You are definitely a company that people can trust.

Virginia B.Los Angeles, California

We would like to thank Land Sales Company for the great customer service experience we had when purchasing our land. We purchased land years ago and it was never this easy. It was very quick, and the representative answered all of our questions before we purchased our property. We recommend Land Sales Company to anyone looking to buy a property with small down payments, small monthly payments, and a perfect customer service experience.

Tammy B.Fort Polk, Louisiana

Thank you Land Sales Company for the help you extended in making it possible for me to buy that piece of land in northern California! I have never own my own property here in America. I even call myself a "forever renter" but since I retired, I thought of going to country living ...and my cruising the internet one day in 0ct 2010 paid off because I stumbled upon your website and learned of the possibilities of acquiring affordable land. As a first time buyer I highly appreciate all the help I got from the staff of Land Sales Company More power to you all!

Leonor V.
Leonor V.San Francisco, California

I would like to thank Land Sales Company for the great customer service experience I had when purchasing my land. It was very quick & Easy and the representative’s answered all of my questions before & after I purchased my property. I recommend Land Sales Company to anyone looking to buy a property with a small down payments & small easy monthly payments with A company with perfect customer service experience. I would like to say a Big Thank You! to all at Land Sales Company.

Rodney P.
Rodney P.United Kingdom

I have purchased two properties (one with my son), and both transactions went extremely well. The info packets are perfect. I will definitely recommend Land Sales Company to my family and friends.

Thank you!

Don H.
Don H.Hemet, California

I’ve purchased two properties from Land Sales Company and I am very happy with their customer service and sales staff. The process was very simple and it has been a pleasure doing business with them. Thanks to Land Sales Company; I'm all smiles this holiday season!

Jacque A.
Jacque A.Los Angeles, California

Buying property from Land Sales was very simple, and now that I am their customer they treat me great! Their paperwork is clear and they are always around to answer any questions I have.

Cassius B.
Cassius B.Richmond, California

My experiences with Land Sales Company have been great. They have done everything they have promised and it has been a very pleasurable experience. I have two commercial properties in Texas and they are excellent investments.

Wendell M.
Wendell M.Dallas, Texas

My wife, Kristin and I purchased several properties from Land Sales Company within the last few years. It has always been an easy process; much easier than any other company we have worked with. The paperwork was and is always very clear and easy to understand, and any time we need to call customer service, we always get a friendly person, and get all of our questions answered. We recommend Land Sales Company to anyone looking to buy a property with a great location, reasonable down payments, small monthly payments, and great customer service.

Bruce J
Bruce JSt.Paul, Minnesota
Style switcher RESET
Color scheme
Show Buttons
Hide Buttons