Client (Partnership) has purchased land to build a commercial building to rent to a medical office. He closed on the land and construction loan on 12/31/2015. In addition closing costs he has incurred about #32,000 in civil engineering, legal and architect fees in September of 2015 to survey the land, excavation etc. I am not planning to do anything with closing costs this year for just one day.
However, how should he treat the $32,000 in other costs incurred for 2015. If these costs can be deducted or amortized can he use form 8825(Rental Real Estate Income and Expenses of a Partnership or an S Corporation)to report these costs because next year he will have his building completed and rented. If so can questions relating to fair rental days etc be left blank on the form? Thank you.
However, how should he treat the $32,000 in other costs incurred for 2015. If these costs can be deducted or amortized can he use form 8825(Rental Real Estate Income and Expenses of a Partnership or an S Corporation)to report these costs because next year he will have his building completed and rented. If so can questions relating to fair rental days etc be left blank on the form? Thank you.
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