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    Tax Treatment of Costs of Improvement to Land

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    Can you please assist me with this question.
    Question: Costs of improvements to land:

    a. must be added to the basis in the land and recovered through depreciation
    b. are deductible immediately
    c. must be added to the basis in the land and recovered through amortization
    d. must be added to the basis in the land and recovered when the land is disposed of.

    I am unsure of this one. I think it is d because land cannot be depreciated. I read that the improvements would be capitalized. Therefore, it makes sense the improvements would be recovered when the land is sold or disposed of.

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    Discusses Tax Treatment of Costs of Improvement to Land

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