116 T.C. No. 14
UNITED STATES TAX COURT
DAVID C. HUTCHINSON, ET AL.,1 Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket Nos. 15912-98, 15958-98, Filed March 14, 2001.
15959-98, 15960-98.
Held: Under the alternative cost method of Rev.
Proc. 92-29, 1992-1 C.B. 748, a real estate developer
may allocate to its bases in lots sold $3,707,662 in
estimated construction costs relating to common
improvements.
Held, further, $5,861,595 in estimated, future-
period interest expense relating to common improvements
does not qualify under the alternative cost method for
allocation to the developer’s bases in lots sold.
Neil D. Kimmelfield, for petitioners.
Gerald W. Douglas and Nhi T. Luu-Sanders, for respondent.
1 Cases of the following petitioners are consolidated
herewith: Isaac M. Kalisvaart and Francien Kalisvaart-Valk,
docket No. 15958-98; William T. Criswell and Sharon L. Criswell,
docket No. 15959-98; Robert S. Bobosky and Judeen M. Bobosky,
docket No. 15960-98.
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