I have a LLC Partnership (file 1065) and last year we purchased a house for $125k and had it demo as we went through the replat process to sub-divide the land into 4 new lots to build 4 new spec homes.
I know the purchase price of $125k is the cost basis and we divide that by 4 as we build and sell the spec homes to take the deduction. We are going to start building in the next 2 months.
My question is, are the fees we paid to the city for the replat fees, cost of the house demo, soil test, and the cost to the engineer & development consultants who handled the surveying services, platting services and drainage plan is that added to the cost basis as well or we able to expense that on our taxes now?
I tried to look online but couldn't find anything concrete.
Thanks
