The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: commercial real estate: "earnest money&||Date: 3/19/2000 8:50 AM|
|Author: hghcpa||Number: 32108 of 119695|
I am a partner in a newly formed commercial real estate partnership (very small business). Can anyone tell me if the "earnest money" deposit for a commercial real estate purchase is a deductible expense ? I am preparing a partnership Form 1065 for 1999 and this is a sticking point. Thank you.
No - it would be listed as a "other asset" on the balance sheet of the Pship.
If the sale is consummated the deposit would roll into the cost basis of the property purchased.
|Copyright 1996-2013 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|