James, after a brief telephone follow up with my tax man this past Monday, following Sherman's informative, yet sobering presentation, another possibility is any interest expense for the land loan.
It is deductible up to the amount of any interest earned, including dividends etc, as long as the land is held for investment purposes.
Another route is building a second home up there and deducting 100% of the home and land interest portion of the note, and this is not governed by any earned interest income. After looking at the numbers, it maybe a alot easier than some other alternatives.
