aney wants to open a cookie shop and so pays $200,000 for land on which to build. But then surprise! she discovers that the county has a property tax lien on the land because the former owner had forgotten to pay and disappear-ed. Janey has to pay and does pay the $7,500 owed to the county in order to have the lien removed so that she can use the land as security for a construction loan. Janey should

(a) capitalize the $7,500 into her cost basis with respect to the land.

(b) deduct the $7,500 on her Schedule C as property taxes for the current year.

(c) deduct the $7,500 on her Schedule A for the current year, assuming that she chooses to itemize.

(d) understand that the payment amounts to a tax nothing to her because she was not the actual party liable for the taxes.

Explain your reason for your answer.