presented by
Finishing up a condo development
Wanted to check in with BP and see if anyone had any experience with selling condos and any advice how on to be tax efficient.
I'm currently constructing a 37 unit condo project and plan to sell the condos individually at retail price. As I understand, most developers who do this have to pay capital gains on each of the condos and there really isn't any way to do an exchange unless I purchase 37 individual condos elsewhere. So a 1031 exchange might be out of the question.
Alternatively, instead of selling the condos, we could perhaps "lease to own" the property for 12 months in order to reclassify the condos as a long term capital gain which would result in being a taxed a lower capital gain %.
Was wondering if anyone had any experience with this and any advice.
Thanks
Jason