
Tax Accounting for Land Developers (LITX20/24)
Event Description
Land developers have unique tax issues. Capitalization of interest and other `carrying charges’, deduction of interest, allocation of various costs to arbitrary values of building lots. What to do with costs of streets. Are streets different from State roads? What accounting rules apply when a land developer arranges a Section 1031 exchange on part of a development that increases the value of adjoining lots. Should subsequent sales affect an original allocation of value (and therefore cost)?