Property Developers

Key requirements

Accumulate directly attributable land and development expenditure in the Development Cost Account through the TOP YA. In that YA, amounts due under the sales agreements for sold units are taxed and allowable development costs for those units are deducted. Where units remain unsold, costs must be apportioned rather than all deducted immediately. Maintain information at the acquisition, development and sales stages, including project costs and sales schedules. Form C filers provide relevant information upfront in the computation; simplified filers keep it available for request. This tax treatment should not be confused with the recognition rules for a construction contractor providing services to the developer.