Question

We bought land with a bank loan and built a commercial property on it with a construction loan. Will we add the two costs?

Forum|Forum|1 year ago
March 6, 2025
1 reply
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This is in response to the HUD-1 Settlement statement

Add the two costs together for what?

For depreciation? No, the land is not depreciable, only the building is able to be depreciated, so you would not add the two costs together. The land just sits on your books as an asset until you sell it. There is no tax reporting, benefits or consequences to buying the land.

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