Real property subdivided for resale into lots,even when substantial physical improvements have been made to the property,always causes the gain from sale of the lots to be treated as capital gain.

Question

Quizplus · Accepted Answer

The gain from the sale of subdivided real property is not always treated as capital gain; it can be treated as ordinary income depending on the circumstances, such as the frequency of sales and the taxpayer's involvement in the development and sales activities.

Real Property Subdivided for Resale into Lots,even When Substantial Physical