Land Improvements and Taxes

[Jacob Johnson]

Hello, 

We are in the process of buying 12 acres in TN for 400k, we plan on performing all necessary testing (perc etc.) in order to successfully subdivide into (3) 2 acre Parcels and keep (1) 6 acre parcel and build on it for ourselves. The total investment after closing on the 12 acres will be in the ~7k range, the 3 parcels will sell based upon our research for 6-700k total for all 3. After talking with a few CPAs and researching for hours, i have not found a good answer to the question of, is there a better tax advantage then just claiming the 7k we spend on the subdivision process as land improvement? Due to us subdividing and performing land improvements the land increases in value significantly versus just leaving it as a 12 acre parcel, is there anything we can do to leverage that improvement? The land will be bought and sold as raw land. 

Thank you, 

Jake