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I'm thinking of buying a lot to build a house on. I would…

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I'm thinking of buying...

I'm thinking of buying a lot to build a house on. I would like to build a new construction home on it. and sell it once it's complete. I obviously want to pay the least amount of taxes possible. What sort of track would you advise?

Accountant's Assistant: The expert will know how to help. Is there anything else the expert should be aware of?

I'm just an investor. not a developer

Submitted: 8 months ago.Category: Tax
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8/6/2017
Tax Professional: emc011075, Tax adviser replied 8 months ago
emc011075
emc011075, Tax adviser
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Hi. My name is ***** ***** I will be happy to help you.

The property will be treated as investment property. You will report capital gains in the year you sells, long term or short term, depending how long you hold it.

Your capital gains will be difference between the sales price and your expenses: purchase price, building cost. You will be able to deduct property taxes as part of your itemized deduction. If you want to lower your capital gains, keep it for more than one year or reinvest the entire proceeds into a new project.

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Tax Professional: emc011075, Tax adviser replied 8 months ago

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