In order for real property to be considered ordinary income property (i.e., inventory rather than a capital asset), the taxpayer's livelihood must be derived primarily from buying and selling real estate.

Question

Quizplus · Accepted Answer

Real property can be considered ordinary income property if it is held by the taxpayer primarily for sale to customers in the ordinary course of a trade or business, regardless of whether the taxpayer's livelihood is primarily derived from buying and selling real estate.

In Order for Real Property to Be Considered Ordinary Income