Demolition of a building. (allocation of demolition costs): An article from: The Tax Adviser

This digital document is an article from The Tax Adviser, published by American Institute of CPA's on September 1, 1992. The length of the article is 1305 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: Buildings that are purchased and rented prior to demolition fall into a gap in interpretation between IRS regulation 1.165-3 and IRC 280B. IRC 280B states that the demolition cost should be capitalized as a portion of the basis. Amended in 1984, IRC 280B supercedes the regulation, but does not address the issue of use between purchase and destruction. An interpretation consistent with 1.165-3 is not unrealistic, and care should be taken when figuring the amount of the purchase price to be allocated to the basis of the property.

Citation Details
Title: Demolition of a building. (allocation of demolition costs)
Author: Ray Edwards
Publication:The Tax Adviser (Magazine/Journal)
Date: September 1, 1992
Publisher: American Institute of CPA's
Volume: 23 Issue: n9 Page: 586(3)

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