Can I take a tax loss on this property???

[Ken Sanders]

I purchased a worthless vacant residential lot over a year ago with the intent to flip or develop it that I now can't get rid of. The property was purchased and remains in my personal name. I was thinking of transferring the property into an LLC, stop paying the taxes on it, let it go to the County tax sale, and then, [hopefully] take a tax loss on it.

My question is, would I be able to count this as a long term capital loss on my federal income taxes? If so, when does my loss for tax purposes become official? When I sell it to an LLC for $1? When it's sold at the County tax sale? I should note that I own the lot clear & free.

Any potential pitfalls with this plan? I've exhausted all other options.