[RobinGRS]

My company is in the process of purchasing land to relocate one of our offices. We cashed in a CD to use as a downpayemtn for the land. We also sent to the towns planning board a check $300.00 for Review and $3700.00 for storm water escrow. My question since we are a general contractor and we will be doing the building ourselves - do we set it up as a new job/project and what is the best way tax wise for us to code these transactions.
Robin Farrington

[AtlantaTaxExpert]

The $300 is admin costs.

The $3,700 is considered a utility cost in my opinion.

Since the costs are internal, you are NOT paying yourself for the work, so you do not have to record any income. Now, if you are a corporation, then the answer MAY be different.

[RobinGRS]

You were very gracious in helping me with a Tax question regarding my company purchasing land for a new building.
In your answer you had said the costs are going to be internal - which I agree since its our building and we are doing most of the work ourselves. There is no income only cost to this building. But you had said if we are a corporation the answer may be different - well guess what we are a corporation - therefore how will the tax situation be different. This is what we want to know is the proper way of coding this so that the company gets all the tax benefits we can possibly get.

[AtlantaTaxExpert]

Robin:

I just answered your email.

You should get advice from the person who prepares your corporate tax return. That is what they get paid for, and, in the end, they appreciate being kept in the loop when these decisions are made so that they can guide you through the process. It makes their job come tax time a LOT easier.