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    Real Estate Questions

    1. Client completed building a spec home in 2007. Home is currently for sale. I assume all expenses are applied at time of sale. No deductions before sale. Correct?

    2. Client purchased an unimproved lot for future resale. He has tax and interest expenses. Do the same rules regarding the spec home apply? In other words, expenses are deductible at time of sale and not before?

    All comments appreciated.

    #2
    Correct. Your client has inventory not current expense.
    JG

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