It wasn't addressed in the sale contract and I didn't want a fight at walk through so I asked prior to settlement.

Only taxpayers that are solely deducting the investment interest expense, do not have a carryover of interest deduction from a prior year, nor have an interest expense that exceeds the investment’s income with interest and dividends do not have to file Form 4952.

Make sure to have all funding and budgets in place prior to commencing construction!

Apparently, because this was auctioning taxes not paid in the first years prior to the financial crisis, there were more properties on the block than ever before in Franklin County - over 40. 

And evaluating the track record is a call that's made first by the taxpayer or their CPA, and ultimately by an IRS auditor (should one get involved). it is very true that the IRS cares about intent with respect to capital gains in real estate -- I've certainly seen cases where the statutory timelines were less important and the identified intent of the investor.with respect to determining whether you qualify as a developer or an investor, it's much more of a "forest" than the "trees"...so holding any given investment for 14 months prior to a flip is certainly no guarantee of receiving long-term capital gains treatment.I hope this helps.  

One local resident, who was a known/prior instigator with the council, posted flyers with images of drugs, money, and sex crimes, went door to door campaigning over a mile away, and got the media involved. 

If it were me I'd fix it up to rental quality, no furnishings and rent to the first qualified tenant to apply (3 x the rent gross household income, no history of court with or debt to prior landlords). 

Research more comps prior to purchase.

The duplex I bought about 6 months ago (in 2023 as the market cooled off) came in under my appraisal, which means I had free equity, and I paid less than 60k of what he had it listed for on the market a few months prior. 

Make sure you always get a estoppel letter prior to closing on your next property.