Since an investor in a MURB is not allowed by RC to use the cash method, interest expense incurred by him with respect to a MURB is deductible only in the year in respect of which it is payable.
Where the bank insists that the promoter guarantee the loan and the guaranteed loan is advanced in full, then the guarantee fee charged by the promoter is deductible in full by the investor.
RC will not give a ruling as to the reasonableness of soft costs.
