Updated over 12 years ago on .
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Question on capital gains treatment
Hi everyone. I have a home that I purchased in 2010 for 25k. I'm just now renovating it and it will be finished in a month. If I sell it in 2013, will it qualify for short or long term capital gains? I've owned the property for over a year but most of the capital expenditures are just now happening.
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Jon Holdman
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Jon Holdman#3 Real Estate Deal Analysis & Advice Contributor
#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
Sorry, Steven, this sounds just like one of several fix and flips. Ordinary income. But Matthew, you and your CPA should discuss and agree on how to handle it. It's the two of you that have to defend it to the IRS.