Residential golf community and resort developments have traditionally faced many tax issues including:

1. When to recognize income from lot sales,
2. Capitalization of carrying and other indirect costs during construction,
3. Inclusion of future costs in lot costs, including implications of extending the statute of limitations for assessment of tax,
4. Allocations of lot development costs to specific lots sold,
5. The accounting for "excess costs", if any, of golf course and related amenities not transferred to membership entities that were incurred to enhance the salability and value of the lots,
6. Depreciation of golf course land improvements retained, and
7. The accounting for golf course costs anticipated to be transferred to membership entities,
8. Entity selection,
9. General tax planning for owners.

All of these issues, some individually but clearly collectively, can have a very significant effect on a development's cash flow requirements and after-tax rate of return to the owners/investors.