codeblue123
Level 3
06-23-2021
06:03 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
If they develop the land does it cause it to be taxed as ordinary income? I expect if they build a home on a lot, that they would be taxed as ordinary income and not capital gains rates. I am trying to understand if developing the land causes these sales to be from a trade or business and subject to self employment taxes. I know flipping a house is subject to self employment taxes.