Ask Experts Questions for FREE Help !
Ask
    Edukkor's Avatar
    Edukkor Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Apr 30, 2014, 01:32 PM
    Construction costs assigned to for-profit or to non-profit?
    We are in the middle of a construction and the building being built will be divided in half. One side of the building will be a for-profit business specializing in snacks, smoothies, juices, etc. and the back part will be the offices and the classrooms for an education non-profit. No revenue has been generated for either. For tax purposes, do we assign the construction costs to the business or the non-profit? Or to both? Thank you so much for your help!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Apr 30, 2014, 01:38 PM
    BOTH, on a 50-50 split.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
    		  
    #3

    Apr 30, 2014, 01:40 PM
    Please clarify: who is "we" in this question - are you the construction company, or the owner of one or the other of these businesses, or the building owner? If you're the building owner and are looking to allocate costs between tenants, I would think you would do it by square footage with perhaps some adjustments for any special construction that either of them may require for the operations - such as extra plumbing or electrical if needed. I don't see how the nature of the tenant being non-profit or for-profit matters in this.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Is segment profit only from direct costs or direct costs and indirect costs? [ 0 Answers ]

I am trying to understand this problem and I am not sure if got it or not. Operating Statement for ST10: Batches prodcued & sold: 200 sales rev. $32,000 Direct costs: Direct materials = (1,800) Direct labor = ((4,200) Variable manufacturing overhead=(2,000)

The profit maximizin outputand maximum amount of profit [ 1 Answers ]

a single product firm operating ina perfectly competitive markethas the following total cost function: C= Q³- 5/2 Q²+2Q+5 given that market price per unit of output Rs. 10.00 find the firm's profit function?

How to calculate profit margin % for ongoing construction project? [ 0 Answers ]

Hi, How do I come up with the % of profit margin in a specific month or period of an ongoing construction project that may have revisions along the way? I'm using the cumulative catchup method. I know the costs, revenue, profits, etc, to date and for total project. This may be a simple...

View more questions Search