Small business residential construction loan closing costs

[SRS6]

Small LLC took out a construction loan in 2023 and have a lot of “work in progress” as an asset. The question is, where in TurboTax do the construction loan closing costs go? I think they need to be capitalized, but right now, I am not sure they should be in expenses or treated like an asset as in work in progress.

[ThomasM125]

It would be best to include the closing costs in work in process as an asset, as they are directly tied to the construction project.

[SRS6]

Thank so much for the reply, esp on tax day! I came to the same conclusion as your suggestion around 1am and submitted them - lol. Your posting makes me feel good about my decision. Thank you!