qbteachmt
Level 15

Did you read Bob's answer: "I would add those costs to basis of the property"

You can't deduct this now; it's not settled, so you have no idea what will end up happening. You can't deduct it later, because that is not Expense; it's being invested in the property rights or in defending property rights. Or, there will be Easement payment which offsets the change in basis.

Which is why Bob answered the way he answered.

Is there something else there that you feel does not apply to your facts and circumstances?

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