Distinguishing between the four categories of real estate for federal tax purposes can be misleading at times. Which of the following categories includes properties that are held primarily for capital appreciation?

Question

Quizplus · Accepted Answer

Investment property is held primarily for capital appreciation, while personal residences are held for personal use, dealer property is held for sale in the course of a business, and trade or business property is used in the taxpayer's trade or business.

Distinguishing Between the Four Categories of Real Estate for Federal