Ordinary income versus capital gain?

Potted Plants and ContainersEasy Hack: - Place strategically positioned potted plants around entryways and patios for a welcoming touch

I added turf to the outdoor patio.

Also has a covered patio that I can convert to living space for extra sqft ($$$).

Ex) Original build was estimated to be $500k, however during the build upgrades were selected such as windows, larger patio, upgraded floors, etc.Option A - Would you have the property reassessed after completion and use the new assessed value for cost basis? 

However, by changing investment income to ordinary income, on would now owe social security and Medicare tax, at the combined rate of 15.3% (both sides), less deduction from income of one half of the tax, so effective rate of 12 - 13 %.  

My questions are: 1) Does a big fix for the retail market automatically put profits into the "ordinary income" flip category?  

We will be meeting @9am Ryan Bros Coffee in Temecula at 9:00am on Sept 10th on the patio outside.

Capital gains tax rates depend on your income level however, an IRA distribution and the depreciation recapture are treated as ORDINARY income. 

There is a special exception for a residential rental property operation with active participation that allows you to use net passive losses from your rental activity to offset your non-passive income (W2 income, or, ordinary income).