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I have a current rental property which we are bulldozing and building a new rental house on in the future. As part of the project, we have costs like soil sample, design fees, etc. we’ve paid outside of the construction loan. How do I account for pre-construction costs paid in 2017?
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Costs of bulldozing the prior building are additions to the cost of the land. No other costs are deductible until the property is made available for rent and then these costs would be added to the cost basis of the new building.
Costs of bulldozing the prior building are additions to the cost of the land. No other costs are deductible until the property is made available for rent and then these costs would be added to the cost basis of the new building.
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