Development cost tracking, pre-sale deposit accounting, and joint venture accounting for real estate developers. Nexus gives development finance teams real-time cost visibility from land acquisition through project completion.
Real estate developers capitalize a complex mix of direct and indirect costs during development. Determining which costs qualify for capitalization under ASC 970 — and how to allocate them to individual units — requires careful accounting.
Most real estate development is structured through joint ventures with complex waterfall distributions, preferred returns, and promote structures. Accounting for the JV while maintaining the developer's own books requires careful separation.
Revenue recognition on residential lot and unit closings is now under ASC 606, which changed the timing of recognition for some common development structures. Getting this right requires a technical accounting view at contract inception.
GAAP (ASC 970 — Real Estate)
GAAP (ASC 606 — Revenue Recognition)
IRS (passive activity rules)
Development costs
tracked to the unit level automatically
JV distributions
calculated with full audit trail
Revenue recognition
defensible and documented
See how Plurafi handles your industry's complexity