Jerome purchased a tract of land for $150,000 in 1998 when he heard that a new highway was going to be constru

Jerome purchased a tract of land for $150,000 in 1998 when he heard that a new highway was going to be constructed through the property and that the land would soon be worth $300,000. Highway engineers surveyed the property and indicated that he would probably get $200,000. The highway project was abandoned in 2004 and the value of the land fell to $80,000. What is the amount of loss Jerome can claim in 2004?

Jerome purchased a tract of land for $150,000 in 1998 when he heard that a new highway was going to be constru
For tax purposes, he should sell it before he claims the loss. He may be able to "mark it to market" on his books; he would not depreciate it as you would equipment; as it's land, it doesn't depreciate.