Fees paid to Township Planning/Zoning Board

[Yardley CPA]

Client was planning to enter into a contract to purchase a plot of land, with the stipulation that the lot could be built upon. Intention was to build a single family home. In going through the process of trying to determine if the lot was “buildable,” client incurred nearly $20,000 in expenses (fees paid to township, architect and engineers). It was ultimately decided that the lot could not be built on. Are any of the fees paid eligible for some type of loss on clients return? If so, where?

Thanks very much.

[jainen]

>>fees paid to township, architect and engineers<<

Development costs are capitalized, so he apparently has a non-deductible capital loss on personal-use property.

[michaelmars]

Was the single family home for rental/resale or for him to live in personally?