Real property subdivided for resale into lots,even if no substantial physical improvements have been made to the property,always causes the gain from sale of the lots to be treated as ordinary income.

Question

Quizplus · Accepted Answer

The gain from the sale of subdivided lots is not always treated as ordinary income; it depends on factors such as the taxpayer's intent, the frequency of sales, and the level of development and improvements made.

Real Property Subdivided for Resale into Lots,even If No Substantial