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Month: June 2015

INTENT DICTATES CHARACTER OF REAL ESTATE GAIN

INTENT DICTATES CHARACTER OF REAL ESTATE GAIN

Check out the decision in Fargo and King (TC Memo 2015-96) for a refresher on the rules regarding whether real estate gains are capital versus ordinary, depending on whether the property was “held” for development, as opposed to an investment purpose. The courts typically analyze various factors when this issue arises, in evaluating whether a taxpayer “held” property primarily for sale to customers in the ordinary course of business, including: ~The purpose for which the property was originally acquired ~The…

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