Various types of recreational uses include hunting, weekend getaways, fishing, ATVing, family retreats, and so much more. While recreational ...SkiptocontentRecreationallandislandthatisusedforexactlywhatitsoundslike.Varioustypesofrecreationalusesincludehunting,weekendgetaways,fishing,ATVing,familyretreats,andsomuchmore.Whilerecreationallandhasanumberofpersonalandfinancialbenefits,they’renotalwaysrealized.Manypeoplepurchasevacantlandforitspotentialagriculturalandresidentialvalue.However,recreationallandhasnumerousadvantagesthatshouldn’tbeoverlooked.Whilepeopledon’tinvestinrecreationallandforpurefinancialbenefit,theopportunitytogainincomeaswellasusethelandforentertainmentprovidesmanyreasonstopurchase.Herearethetopbenefitsofbuyingrecreationalland.1.RecreationallandprovidestaxdeductionsDidyouknowthatowningvacantlandhastaxbenefits?Ifyou’relookingtoinvestinvacantlandtouseasrecreationalland,thenyoushouldknowaboutthedifferentitemsthatcanprovideyoufinancialbenefits.Thepurchaseofvacantlanddoesnotimmediatelycreateincome.Infact,itoftencreatesanexpense.You’llhavetopaypropertytax,interest,andothercarryingcosts.Youmaybeabletodeductthesecostsundercertaincircumstances.Whenyouinvestinrecreationalland,you’renotinthebusinessofbuyingandsellingvacantlandonacontinuousbasisasarealestateinvestorwouldbe.Instead,you’lllikelyholdthisrecreationallandtonotonlyuse,butalsointhehopesthatitwillappreciateinvalue.Whenitcomestimetofiletaxes,you’reeligibleforinvestmentexpensesthataredeductibleaspersonalitemizeddeductionsonScheduleA.Theseexpensesareordinarytaxdeductionsthatgiveyoutaxbenefitsatyourregularincometaxrate.Theymaybeashighas39.6percent(oreven43.3percentifyou’resubjecttothenewMedicarenetinvestmentincometax).Interestthataninvestorpaysonmoneyborrowedtopurchasevacantlandisconsideredinvestmentinterest.Thiscanbedeductedasanitemizedpersonaldeduction.Theannualdeductionforinvestmentsislimitedtotheinvestor’snetinvestmentincomefortheyear.Theexcesswillbecarriedovertofutureyears.Findoutyournetinvestmentinco