I have a similar question. We are building a cabin for vacation rental purposes. We began construction in 2021 and it will be finished in 2022. We are paying as we go - no loan.
How do I treat the amount we spent in 2021 towards the cabin (logs, excavating, foundation)? Do I wait until 2022 and show it only as putting a new building in service? How do I treat the investment, since there is no loan and we are incurring costs to build it?
Any guidance is appreciated!
MNJ
