Tax Court broadly applies UNICAP rules to real estate developer.
The Tax Adviser › Vol. 26 Nbr. 4, April 1995
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Summary
Uniform capitalization
The Tax Court ruled in Von-Lusk that pre-production costs incurred by a limited partnership preparing to develop real estate must be capitalized under IRC section 263A. The partnership had argued that capitalization is only required when production begun, which it had not in this case. There is some indication that the costs might have been currently deductible if expenses were better documented.See the full content of this document
Extract
Tax Court broadly applies UNICAP rules to real estate developer.
Businesses that develop real estate should be aware of a recent Tax Court decision that very broadly applies Sec. 263A, and reaches an unfavorable result for the rea...
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