cpabsd Posted March 14, 2008 Report Posted March 14, 2008 The commitment fee charged a corporation by the bank in establishing a letter of credit - is it amortizable or is it considered part of basis? The client is a land developer and was charged $8500 for this. Quote
RoyDaleOne Posted March 14, 2008 Report Posted March 14, 2008 The basis rule is loan costs are amortized over the life of the loan. Quote
RoyDaleOne Posted March 14, 2008 Report Posted March 14, 2008 Commitment fees are amortized over the expected duration of the commitment Quote
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