Beginning with the 2023 tax year, eligible real estate developers have a more streamlined process for implementing the Alternative Cost Method (ACM) – an optional safe harbor method of accounting for real estate developers using an overall accrual method of accounting that are contractually obligated or required by law to provide common improvements. Real estate developers use the ACM of accounting to determine when common improvement costs may be included in the basis of individual units in a real property development project for purposes of determining the gain or loss from the sales of those units.

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