Taxes on real estate


D

David from Boston

I purchased a piece of land with 7 garages in June -2002.
In September -2003, I razed the garages and built a six unit
building I will be selling in May 2004 as condominiums. I
will occupy one condiminium as my residence for two years.
What are my tax consequences for capital gains and/or
ordinary income for the remaining five units.

thank you
 
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M

MTW

David from Boston said:
What are my tax consequences for capital gains and/or
ordinary income for the remaining five units.
Sounds to me like you would be considered to be a
"developer" or "dealer" in real estate and, accordingly,
your income would be "ordinary" rather than "capital gain."

MTW
 

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