Can you deduct taxes for Water right which is required in the State of Utah if I paid Cash for it?

Question

Utah has water right if purchasing land up a mountain when there is no city water or electricity and you can get water only thru this water right which is a spring up the mountain or (well) that someone else owns therefore making me owner of that water well..

Answer 1

No, that is not deductible. You can use it to increase the cost basis of the property which will lower the gain when you sell.