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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 125003  
Subject: Re: house construction tax law Date: 4/15/2008 7:19 AM
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I see you are a CPA so I'm hoping you can elaborate. What do you mean "no, it's not" when I mentioned amendment?

And also am I right in the first place that the land belongs with every other construction cost on Sch C and that there is no way to take the land as a capital gain? Are the construction guys I talked to wrong?

If you buy land and it appreciates and you just sell the land, that can be capital gains, right? But as soon as you build on it and sell than it's considered a business venture and thus not capital gainable?

Am I right here or is something else going on?

You're almost right. The "almost" part is that someone in construction might have to treat undeveloped land as inventory and not capital gains property.

I believe that Peter, and I know that I, was reacting to the position being taken by the construction guys in your original post when referring to a fraudulent return. Sorry for the confusion.

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