cpabsd Posted March 14, 2008 Report Share Posted March 14, 2008 The commitment fee charged a corporation by the bank in establishing a letter of credit - is it amortizable or is it considered part of basis? The client is a land developer and was charged $8500 for this. Quote Link to comment Share on other sites More sharing options...
RoyDaleOne Posted March 14, 2008 Report Share Posted March 14, 2008 The basis rule is loan costs are amortized over the life of the loan. Quote Link to comment Share on other sites More sharing options...
RoyDaleOne Posted March 14, 2008 Report Share Posted March 14, 2008 Commitment fees are amortized over the expected duration of the commitment Quote Link to comment Share on other sites More sharing options...
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