Article Date:
August 2009


Word Count:
680

 

 

IRS Loses On Subdivision of Lots


If you subdivide some land into lots and sell those lots at a profit, is your profit a capital gain or ordinary income?

 

That was the question that this court case had to resolve.

 

Bruce and Donna Rice reported more than $1 million a year in income from their business, which designs and administers 401(k) plans and manages investments for trust instruments, 401(k) plans, and individuals.

 

The Land

 

To celebrate the success of their business, Mr. and Mrs. Rice wanted to build the home ... Log in to view full article.

Log in to view full article
Already a subscriber?
 
Email Address

 
Password

Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
 
with a money-back guarantee