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Author Question: An individual taxpayer who is not a dealer in real estate plans to subdivide a parcel of land into ... (Read 59 times)

bucstennis@aim.com

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Question 1

All of the following are capital assets with the exception of
◦ personal residence.
◦ corporate stock held for investment.
◦ equipment used in a trade or business.
◦ a Rembrandt painting held in a private collection.

Question 2

An individual taxpayer who is not a dealer in real estate plans to subdivide a parcel of land into four lots and sell them at a substantial gain. The parcel of land had been held six years. In order to qualfiy for capital gain treatment, the individual must satisfy all of the requirements except
◦ the individual must not hold any other real property primarily for sale in the ordinary course of business.
◦ no substantial improvements can be made while holding the lots if the improvements substantially increase the value of the lots.
◦ the parcel of land (or any part of it) cannot have been held primarily for sale to customers in the individual's business.
◦ All of these criteria must be satisfied to allow capital gain treatment.


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Marked as best answer by bucstennis@aim.com on Sep 13, 2020

bbburns21

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bucstennis@aim.com

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Reply 2 on: Sep 13, 2020
:D TYSM


adf223

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Reply 3 on: Yesterday
Excellent

 

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