I don't think we can then infer from 280B that if the deduction is otherwise not allowable, 280B won't apply. Right?
. I absolutely infer that. If the demo expenses and loss are not allowable, what would make them allowable?
I'm reading 280B as silent on a personal-use structure.. OK, I guess you are saying that 280B might still put them into the land basis.
I hope so, but it's not how I read it, as I said above in #7. In the case of a personal residence, I've always assumed you'd add the expenses and loss on demo to the land
if at the time of purchase you had the intention to demolish. But to me that implies that, absent the intention at that time, the "normal" rules would apply. Interestingly enough, reg. 1.165-3 pretty much sets the same rules as section 280B, but it also applies to
a trade or business or in a transaction entered into for profit
.
I have found no Rev Ruls or PLRs or cases that addressed the basis after demoiition of property that was not trade or business or investment property.