Discussion:Capitalize expenses?

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Revision as of 00:46, 25 September 2009

Discussion Forum Index --> Advanced Tax Questions --> Capitalize expenses?
Discussion Forum Index --> Tax Questions --> Capitalize expenses?

Lrussell (talk|edits) said:

25 September 2009
My client (single member LLC filing a schedule C) is in the business of land development. In 2008 we kept track of his expenses related to the research and costs involved with purchase of a large piece of land. Finally, at the end of 2008, the LLC purchased 100% of the stock of the s-corporation that owned the land. (The s-corporation's only asset was the land). So right now, I have an LLC with around $100,000 of expenses related to this project that I am unsure what to do with. Do I expense them as research expenses or do I somehow capitalize them to land owned by the S-corp?
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