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Cost Basis: Construction Project Planned but Never Started
We have racked up nearly $75k in fees (architectural, structural and geotechnical engineering, permitting, surveys, etc.) associated with the planning of the construction of a house.
We unfortunately have to sell the property without having started the construction, and since those planning costs are nearly half of what we expect to realize in gains, need to understand whether they can be included in the cost basis of the property.
In case it is relevant (although I suspect it isn't), this was a second/investment property (not a rental), but we did live there for six months about a year ago, and have owned it for three years.
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May 3, 2020
8:37 PM