Hi everybody,
I have a question for a client who is not a dealer who bought property to develop. The property are parcels of land that has not been developed and there has been no decision made. In prior year, property taxes were capitalized because they thought the land was going to be developed. However this year they decided that they don't know whether or not it is going to be developed.
So my question is can the client start expensing property taxes for this year? I've been trying to find something in the tax code and regulations but nothing comes up except for capitalization of interest. The rule for capitalization of interest is if there is no physical development for 120 days then you can capitalize interest. However I'm not finding anything related to property taxes.
Thank you everybody in advance for any assistance.