How to expense holding costs for a new development?
Hello,
I own a construction co with my husband. We are going to start a SF Spec home this fall. As I was doing my analysis in my spreadsheet, it occurred to me the holding cost for financing the project will be around $20,000. We are using our personal HELOC to fund this project. Since we are using personal equity to fund this project, how do I report this as an expense in our business books? It will make a huge difference to our bottom line and taxable profit if I can't report it. Help??
Thank you, Jen