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Author: onyxina Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121482  
Subject: commercial real estate: "earnest money" Date: 3/19/2000 1:14 AM
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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.
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Author: hghcpa Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 32108 of 121482
Subject: Re: commercial real estate: "earnest money& Date: 3/19/2000 8:50 AM
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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.
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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.


Pete

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