 So the cost of land generally includes the cost of clearing, grading, planting, and landscaping. So now you get into the issue of what is land versus building type of issue, which can be kind of confusing, because what if I bought a piece of land with a building on it? Well, if you plan on using the building, then you're gonna have to basically allocate between the land and the building. But if you plan on just clearing the building off the land, I bought the land for the land, and there happened to be a building on the surface of my land, then if you just tear down the building, then the building isn't what you wanted. So that might be as part of the cost of the land, right in that case, that's part of your cost possibly. So you get a little bit of unusualness in that. So once again, the cost of land generally includes the cost of clearing, grading, planting, and landscaping. Okay, although you cannot depreciate land, you can depreciate certain land proportion costs, preparation costs, such as landscaping costs incurred and preparing land for business use. So when you're tending to the land, then the question is, well, you're obviously not really kind of improving the land as just a piece of dirt that's gonna be there for some time, you would expect maybe you'd be able to expense the costs of landscaping and so on, which aren't things that are gonna be eternal. Eternal love and eternal wealth. As the piece of rock that's below the land is at least for human lifetimes, you would think. So these costs must be so closely associated with other depreciable property that you can determine a life for them along with the life of the associated property in that case. So you can determine the life of the property if you're gonna be depreciating the property, which is one of the requirements for depreciation. Example, you constructed a new building for use in your business and paid for grading, clearing, seeding, and planting bushes and trees. Some of the bushes and trees were planted right next to the building while others were planted around the outer border of the lot. So if you replaced the building, you would have to destroy the bushes and trees right next to it. So these bushes and trees are closely associated with the building, so they have a determinable, useful life. So notice how you see how that kind of works. They're saying, well, there are trees and bushes. How, you know, that's part of the land, you would think, generally. But because they're right next to the building and you'd have to tear them out, if you destroyed the building, then maybe you can have them have a depreciable life, which would generally be better than having to call them just land because then you might be able to get the expense of depreciation related to them. Therefore, you can depreciate them, add your other land preparation costs to the basis of your land because they have no determinable life and cannot be depreciated and you cannot depreciate them. Okay, accepted property. Even if the requirements explained in the preceding discussion are met, you cannot depreciate the following property. So you've got property placed in service and disposed of in the same year. So you put it in there, it's supposed to be a long-term type of thing. If you disposed of it in the same year, it doesn't seem like it's a long-term thing. That's just something funny happened in that case. So determining when property is placed in service is explained later. Equipment used to build capital improvements. So you must add otherwise allowable depreciation on the equipment during the period of construction. So basis, construction to the basis of your improvements. See uniform capitalization rules. That's in publication 551, section 197 intangibles. You must amortize these costs. Section 197 intangibles are discussed in detail in chapter eight of publication 535. If you want to drive into them in more detail intangible property such as certain computer software that is not section 197 intangible property can be depreciated if it meets certain requirements. See intangible property later. So intangible property being property that has value but it's not tangible, not something you could touch or kick or whatever, then can get a little bit more confusing, right? So now you're dealing with these intangible properties, some of which might have value to them due to like laws, for example. So certain term interests. Okay, so certain term interest in property. You cannot depreciate a term interest in property created or acquired after July 27th, 1989 for any period during which the remainder interest is held directly or indirectly by a person related to you. A term interest in property means a life interest in property and interest in property for a term of years or an income interest in trust. So now you've got, when you're thinking about property and the ownership of the property, you've got a bit of a confusion in terms of ownership of the property for a term kind of situation. So that kind of muddies up the waters in terms of what does it mean for ownership and therefore the related depreciation rules. All right, basis, that's more of an unusual situation, of course. Basis adjustments. So if you would be allowed a depreciation deduction for a term interest in property, except that the holder of the remainder interest is related to you, you must generally reduce your basis in the term interest by any depreciation or amortization not allowed. If you held the remainder interest, you must generally increase your basis in that interest by the depreciation not allowed to the term interest holder. However, do not increase your basis for depreciation not allowed for periods during which either of the following situation supply, the term interest is held by an organization exempt from tax, the term interest is held by a non resident alien individual or foreign corporation and the income from the term interest is not effectively connected with the conduct of a trade or business in the United States. Exceptions, the above rules do not apply to the holder of a term interest in property acquired by gift, bequest or inheritance. They also do not apply to the holder of dividend rights that were separated from any stripped preferred stock if the rights were purchased after April 30th, 1993 or to a person whose basis in the stock is determined by reference to the basis in the hands of the purchaser.