Minimizing Taxes When Building and Selling Homes – Advice Wanted

[Jeremy Santy]

Hey BP community,

We’re wrapping up a new home build in Kauai and are considering selling it and starting another project. Buying land, building and selling (not part of a formal construction business), and we’re trying to understand the smartest way to minimize our tax liability from the sale.

Has anyone here gone through this and found good strategies—like structuring it as a primary residence, using a specific entity setup, rolling gains into the next project, or anything else that’s worked?

We’re not looking to flip casually but are open to building more long-term if it makes sense financially. Any advice, examples, or pitfalls to watch out for would be appreciated.

Thanks in advance!

[Jeremy Santy]

Thank you all for the helpful responses! I've bounced this question off my CPA as well but wasn't sure if there was something that I was missing. A few people in this community have bought land, built and sold and I was curious if they knew something that I didn't or, if they were just taking the tax hit which is still worth it because there's still an upside to building spec homes. This discussion definitely gives me more confidence in renting the home out at least for a year. And, great timing as I just met with a property manager yesterday! Thanks again BP community!