The IRS released Revenue Procedure (Rev. Proc.) 2023-9 on Jan. 30, 2023.
This update refreshed and streamlined a previous tax strategy, under Rev. Proc. 92-29, available for real estate developers who are contractually obligated to provide common area improvements — either real property or real property improvements — that benefit multiple properties held for sale.
This strategy often leads to deferring taxes to future years by allocating increased costs to properties sold in earlier years.…
