Property operations & real assets

Books and taxes for land developers.

Raw land under contract, engineering and permitting bills, a road and sewer line going in before a single lot sells, and builders taking down phases over years. Gus sorts all of it, and an accountant checks every transaction.

Book a call What we handle
  • From $197 a month
  • An accountant on every transaction
  • Cancel whenever
AprilExample month
$16,200
what you made

April came in at $16,200. Six lots closed to the builder on the second take-down this month, and I kept the earnest money from four more lots off the books as income since those deals have not closed yet.

  • Lot closings, phase 2Lot sale proceeds
  • Earnest money, phase 3Deposits held
  • County impact fee paymentEntitlement and permitting
  • Grading contractor, phase 3Site infrastructure
  • Survey and engineering invoiceEngineering and design
Money in$61,000
Money out$44,800
Set aside for taxes$3,800
An example month. Yours will have your numbers.

Why your books are different

A land developer's books have to hold costs until a lot actually sells.

A generalist expenses a bill the month it is paid. Your engineering, permitting, and road costs are not expenses of the month you paid them, they are part of what each lot cost to create, and they need to sit on the books until that specific lot sells.

  1. 1

    Entitlement and permitting costs expensed too early

    Engineering studies, permit fees, and impact fees paid to the county are part of what it costs to create a buildable lot, and if they get expensed the month they are paid instead of added to the land's cost, the project looks like it is losing money for years before a single lot sells.

    What we doHolds entitlement and permitting costs against the project rather than expensing them immediately, so profit only shows up when lots actually sell.
  2. 2

    Earnest money counted as a completed sale

    A builder's earnest money deposit on a future lot purchase is not a sale, and counting it as income the month it arrives can make a quiet month look like a strong one before the deal has even closed.

    What we doKeeps earnest money and deposits as a liability until the lot actually closes, so income only lands when the sale is real.
  3. 3

    Builder take-downs get treated like one big sale

    A builder contracted to buy 40 lots in phases over three years is not one transaction, and if the whole contract value gets anticipated up front, actual closings in a given month look disconnected from what the books already claimed.

    What we doBooks each phase's closings as they actually happen, so revenue matches real transactions instead of a projected contract total.
  4. 4

    Holding costs during development get expensed instead of capitalized

    Property tax and loan interest paid while a project sits undeveloped are often required to be added to the project's cost rather than deducted right away, and getting that wrong changes both current profit and what each lot's true cost basis is at sale.

    What we doFlags carrying costs like property tax and interest during active development and hands them to the accountant to capitalize or deduct correctly.
  5. 5

    Multiple phases of one project run together

    A 40-lot subdivision built and sold in four phases over several years needs each phase's costs and sales tracked against that phase specifically, or an early profitable phase can mask a later phase that is actually struggling.

    What we doTags costs and lot sales by project phase, so each phase's real profitability stays visible.

Your categories

The categories Gus keeps for a land developer.

Set up once for how lots sell and what a project costs before they do. You never pick a category. He does, and an accountant checks it.

Money in

  • Lot sale proceedsClosing proceeds from lots sold to builders or individual buyers.
  • Deposits heldEarnest money and reservation deposits not yet closed.
  • Seller financing interestInterest income if you finance a builder's lot purchase directly.
  • Reimbursed impact feesFees a buyer reimburses that you paid up front.

Money out

  • Land acquisitionThe purchase price of raw land brought into a project.
  • Engineering and designCivil engineering, surveying, and site plans.
  • Entitlement and permittingCounty fees, impact fees, and permit costs.
  • Site infrastructureGrading, roads, sewer, and water line contractors.
  • Property tax and loan interestCarrying costs during active development.
  • Broker commissionsFees paid on lot sales.
  • Legal and title feesClosing costs and contract work on lot sales.

What we watch for you

  • Cost per lot

    Total project cost divided by lots delivered, the number that tells you if the project pencils out.

  • Lots closed against lots under contract

    How much of your pipeline is real cash versus still a promise from a builder.

  • Carrying cost per month

    What holding an unsold project costs every month it sits, tracked so a slow phase does not go unnoticed.

  • The set-aside

    What you will owe once lots actually close, tracked so a big closing quarter does not surprise you.

Ask Gus

Things land developers ask Gus.

Text him like you would text anybody. He answers in plain English, and when a question is above his pay grade, an accountant looks and gets back to you.

We paid $80,000 in engineering and permitting this quarter and it looks like we are losing money. Is that right?

Not really. Those costs get held against the project rather than expensed right away, since they become part of what each lot cost to create. Your real profit shows up when lots actually sell.

A builder put down earnest money on 10 lots but we have not closed yet. Do I count that as income?

Not yet. I keep it as a deposit you are holding until the sale actually closes, so it does not inflate this month's numbers before the deal is real.

Is the profit on our lot sales taxed as ordinary income or capital gains?

That is above my pay grade to answer alone. It usually depends on whether you are treated as regularly developing and selling lots or holding land as an investment, so I flagged it for the accountant to work through with your specific project history.

The tax side

The tax side of a land development project.

Most of what goes wrong here is timing: costs that should sit with the project until it sells, and a dealer-versus-investor question that changes how the profit is taxed.

What your return has to get right

Your accountant signs it, so it gets done right the first time.

  • Development costs are held against the projectEngineering, permitting, and infrastructure costs are typically capitalized into the project's cost rather than expensed as paid, matched against lot sales as they close.
  • Carrying costs during developmentProperty tax and loan interest paid while a project is being actively developed are often required to be capitalized into the project rather than deducted currently. Whether that applies to your specific project is a call the accountant makes.
  • Dealer versus investor statusA developer who regularly subdivides and sells lots is usually treated as holding inventory, with profit taxed as ordinary income, while a less frequent land sale can sometimes qualify for capital gain treatment. This depends heavily on the facts of your specific activity.
  • Contractor 1099sEngineers, surveyors, and site contractors not on payroll get a 1099-NEC by January 31 if paid $2,000 or more in 2026.

Deductions land developers miss

Your bookkeeper knows what to look for in your statements. You never have to.

  • Engineering and surveying fees
  • County permit and impact fees
  • Grading and site work
  • Title and closing costs
  • Broker commissions on lot sales
  • Legal fees for contracts
  • Property tax during development
  • Loan interest during development
  • Environmental and soil studies
  • Insurance during construction
  • Accounting and legal fees
  • Signage for lot sales

General information about 2026 federal rules, not advice for your business. Your accountant looks at your actual numbers before anything gets filed.

All year, not just April

A land development year, kept every month.

Phases close on their own schedule, sometimes years apart. Your taxes come on a schedule. Your team keeps you ahead of both. Every month in between, your bookkeeper closes the books and speaks up the moment something looks off.

  1. January

    Plan the year

    Last year's return gets started, the vendor 1099 list is ready, and you get a monthly set-aside so tax season is already handled.

  2. April

    Filed. Done.

    Your return is filed and signed. No surprise bill, because the set-aside has been running since January.

  3. July

    Halfway check

    Where you stand, what you will owe, and whether this year's lot closings changed the number.

  4. October

    Before next phase

    Before the next phase's grading and permitting ramps up, Gus reviews cost per lot on the phase that just wrapped.

What you get

Starts at$197a month

What you pay depends on what your business needs, and it does not move after that, busy season or slow. No hourly bills, no surprise invoices, no setup fee.

Book a call
  • Monthly bookkeeping

    Every transaction sorted into categories set up for land developers. You never categorize a thing.

  • An accountant checks every transaction

    Real review, every month, before your books close. Not a spot check.

  • Your business tax return, filed

    Prepared, reviewed, and signed by that same accountant every year.

  • The monthly number

    What you made, what you spent, what to set aside for taxes.

  • Your own bookkeeper

    A real person assigned to your business, in the app whenever you need them. No hold music.

  • On your books all year

    Every month, not just in April. Your team speaks up whenever something is worth your attention.

  • Cancel any time

    No contract. No cancellation call. Your books are yours.

Straight answers

Questions land developers ask first.

Do you track our project by phase or as one big number?

By phase. Costs and lot closings are tagged to the specific phase they belong to, so an earlier profitable phase does not hide a later one that is struggling.

We paid a large impact fee before any lots sold. Does that hurt this year's taxes?

It should not create a loss the way an ordinary expense would, since fees like that usually get held against the project's cost rather than deducted right away. Gus flags them so the accountant applies the right treatment.

How do you know when a builder's deposit becomes real income?

It becomes income at closing, not when the deposit is made. Gus keeps deposits as a liability until the sale actually closes.

Is our profit on lot sales ordinary income or a capital gain?

That depends on whether your activity looks like regularly developing and selling lots or a less frequent land sale, which is a fact-specific call. Gus flags it and the accountant works through it with your project history.

We are financing a builder's lot purchase ourselves. How is that different from a straight sale?

The interest portion of what you collect is its own income, taxed differently than the lot sale itself, so Gus keeps it on a separate line.

Our books have been a mess since we started this project years ago. Can that be fixed?

Yes. Send the bank statements and any project cost records you have. Gus sorts them and the accountant checks them, and most developers get a clear project-to-date picture within a few weeks.

Is a real accountant checking my books?

Yes. You get your own bookkeeper, Gus does the first pass on every transaction, and an accountant checks every one before your month closes. That same accountant prepares, signs, and files your business return. Goatkeeper is not a CPA firm, and we never pretend a person looked when they did not.

What does it cost, and can I cancel?

It starts at $197 a month, depending on what your business needs. No setup fee, no hourly bills, no contract. Cancel any time from the app, and your books go with you.

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Book a call

Pick a time. That's the whole signup.

Fifteen minutes with a real person on our team. They look at where your books are, tell you straight what it takes to get caught up, and get you set up on the spot if it fits.

  • $197 a month to start
  • An accountant on every transaction
  • Cancel whenever