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contractor building spec house

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    contractor building spec house

    Regular client, self employed as contractor. With his business down, he's building a spec house on land he owns. No business revenue last year. The spec house was the only project he worked on.

    I'll be using the majority of his 2009 expenses as cost in the house when it sells- mostly building materials, plumbing & electrical supplies. Some expenses I think he can use for 2009- contractor's insurance, business phone, ongoing depreciation on some equipment.

    I am wondering about a few expenses - equipment rental, equipment fuel and inspections. Are these also treated as costs in the house, or currently deductible? Thx!

    #2
    Originally posted by BP. View Post
    Regular client, self employed as contractor. With his business down, he's building a spec house on land he owns. No business revenue last year. The spec house was the only project he worked on.

    I'll be using the majority of his 2009 expenses as cost in the house when it sells- mostly building materials, plumbing & electrical supplies. Some expenses I think he can use for 2009- contractor's insurance, business phone, ongoing depreciation on some equipment.

    I am wondering about a few expenses - equipment rental, equipment fuel and inspections. Are these also treated as costs in the house, or currently deductible? Thx!
    Simply a matter of segregation - separating direct expenses of the spec house and indirect expense viz. overhead and currently deductible.
    ChEAr$,
    Harlan Lunsford, EA n LA

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