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I sold my land. Can I claim a depreciation expense?

Land is classified as real property for a business. Land, however, cannot be depreciated because it is considered to have an unlimited useful life.

If the land was used in your trade or business and held for longer than a year, the resulting gain/loss may be considered a section 1231 transaction. See Publication 544 for more details. The land sale transaction is reported on Form 4797.

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