Real Estate - Expenses

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If you've purchased land for real estate but the registry isn't yet in your name, you might be wondering about claiming expenses. Generally, costs related to constructing buildings for sale should be capitalised under 'Work In Progress' (WIP). However, other general expenses related to the purchase can often be claimed in the same financial year.

Himanshu

Himanshu (Querist)
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09 July 2023 I am in to the business of real estate where I have purchased some acres of lands and have only registered the deal with the government [both seller & buyer signed the agreement & submitted in the court] but registry has not yet been transferred under my name?

Is there any way I can claim this purchase expense during the financial year?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 July 2023 Yes, the expenses are debited under Work In Progress, and credited whenever any sales made.

Himanshu

Himanshu (Querist)
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09 July 2023 Thank you...
That's helpful

Message likes : 1 times

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 July 2023 My Pleasure.

Himanshu

Himanshu (Querist)
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10 July 2023 Can I claim that expense in the same financial year instead of parking that under WIP [Assets]?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 July 2023 If related to constructing building/units which are for sale, you have to park it under WIP, but other general expenses can be claimed in same FY.

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