Discussion:Construction Loan Fees
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| 16 June 2006 | |
| I am just starting the accounting for an LLC that has just broken ground for a commercial building. The building will be completed by year end. I have a few questions that I would greatly appreciate some insight.
All expenses prior to breaking ground would be either syndication, organizational, or start-up costs - - correct? There is no interest expense. What about the Architect/Licenses & Permits/Loan Fees/Insurance? These should be included as building? | |
| 16 June 2006 | |
| If this is merely going to be a rental building, or sold, for that matter, I hold all costs to the building. There are some here who segregate the loan costs...but basically everything being done is for this one property, so until it's ready, there can't be deductible expenses, except maybe org costs if you want to split them out.. | |
| 16 June 2006 | |
| Thanks!
The plan is to sell once fully leased up. So it may be a rental for a year before sale date. What about Loan Origination Fees? | |
| 16 June 2006 | |
| I believe the loan fees would amortizable over the term of the loan. | |
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