Linda, a single taxpayer, purchased a 10-acre tract of undeveloped land outside of Durham, NC as a long-term investment. She financed the purchase with a mortgage from BB&T.

This year she paid $3,000 of interest on the mortgage and $700 in property taxes.

These are her only itemized expenses.

What is Linda's best course of action from a tax standpoint?

	-	Itemize the $3,700 of deductions even though it's less than the standard deduction because at least she will get some value out of them.
	-	Use the standard deduction for single taxpayers and elect to add the $3,700 to her basis in the land.