Can I develop the lots under my primary residence ?
Hello all and thank you so much for maintaining such informative site. I am in TN and live in a home with its yard that turns out contains 4 lots. These lots just need to be reinstated and can be built on, a home on each. I will soon be living full 2 years in that home and my question is the following: Can I sell that home as a person to an LLC (or another form of business) in which I will have sole interest or me and my husband will? I would like to take advantage of paying no taxes on that transaction. Then I would use that lot to build 4 homes as this business undertaking and hope to have the cost of lots be part of my investment, meaning when one day I sell those new homes, I will subtract lots and cost of building from my sales, so to reduce my eventual tax on the profits. I hope this is clear enough....basically I want to sell as a person to a business entity and that business entity does the building and selling of these homes. Anyone knows? If not, who do you think would have the clear and final answer to such question? A CPA or a RE lawyer? Thank you very much ahead.