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Updated over 5 years ago,

User Stats

98
Posts
13
Votes
Peter Lee
  • Developer
  • Los Angeles, CA
13
Votes |
98
Posts

Tax question on acquisition fee

Peter Lee
  • Developer
  • Los Angeles, CA
Posted

I am in escrow on a commercial building for a value-add deal I am developing and will get an acquisition fee from the LP I am partnering with.  How is this acquisition fee classified tax-wise?  Is it ordinary income?  Or can it be classified as short term capital gains as I have not been in escrow for more than a year.

Any thoughts appreciated.

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