General Landlording & Rental Properties
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by

1031 Exchanges
presented by

Real Estate Classifieds
Reviews & Feedback
Updated over 3 years ago on . Most recent reply

Do i pay long term Capital gains or short term
If i buy land and start building 12 months after i perchase the land and sell land with new property for a profit do i pay long term capital gains or short term ?
Most Popular Reply

If you're building to sell then neither, you are creating business inventory for sale. The profit would be taxed not as capital gains but as ordinary income.