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Looking for Tax Advice - Spec Home
I am looking for a real estate tax professional/strategist.
Back story: I entered into a 50/50 contract with a builder where we split the proceeds from the build and sale of a home 50-50.
I bought a plot of land and used a construction loan to cover the costs. Now, we are close to selling and I am trying to figure out the best way to approach the taxes on it. From my research it sounds like people are split between thinking it is Ordinary Income vs. Capital Gain. Some have suggested a 1031, but I doubt that is possible. Ultimately, I have a few ideas, but I need some expert advice!
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#1 Tax, SDIRAs & Cost Segregation Contributor
- CPA | Accepting new clients | 50 States
@Brad Holub congrats on finishing the spec home.
A 1031 exchange isn't an option since this isn't a rental property.
Taxes on sale are ordinary income plus you will pay self-employment tax (unless you've structured a specific way with an entity, but you didn't provide this information).
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*This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.