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Updated over 3 years ago on . Most recent reply

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51
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5
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Rafael Trinidad
  • New to Real Estate
  • ORLANDO
5
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51
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Do i pay long term Capital gains or short term

Rafael Trinidad
  • New to Real Estate
  • ORLANDO
Posted

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 ? 

  • Rafael Trinidad
  • Most Popular Reply

    User Stats

    3,129
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    Matt Devincenzo
    • Investor
    • Clairemont, CA
    2,640
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    Matt Devincenzo
    • Investor
    • Clairemont, CA
    Replied

    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.

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