What is the name of your state? FLORIDA
I am confused about capital gains treatment on land that I own and plan to rent for a few years before I sell it. I am hoping that the rental income will be taxed as income with the profit from the sale being a capital gain. Since land can't be depreciated, I don't believe the lot is a Section 1250 asset but I need to know for sure. Also, if I buy more building lots as an investment with a view to selling them in the furure, but with modest rental income in the meantime, does this constitute a business with the long term capital gain being treated as income? Lastly, does anything change if the properties are owned by my "S" Corporation? Any guidance would be appreciated. Thank you.
I am confused about capital gains treatment on land that I own and plan to rent for a few years before I sell it. I am hoping that the rental income will be taxed as income with the profit from the sale being a capital gain. Since land can't be depreciated, I don't believe the lot is a Section 1250 asset but I need to know for sure. Also, if I buy more building lots as an investment with a view to selling them in the furure, but with modest rental income in the meantime, does this constitute a business with the long term capital gain being treated as income? Lastly, does anything change if the properties are owned by my "S" Corporation? Any guidance would be appreciated. Thank you.