THE “SHOVEL IN THE GROUND PROBLEM”: …

THE SHOVEL IN THE GROUND problem : PLANNING FOR real estate development activities Nicholas J. Bakatsias Carruthers & Roth, Box 540 Greensboro, NC 27402 (336) 379-8651 INTRODUCTION The uncertainty surrounding the real estate dealer versus investor issue has generated a substantial degree of caselaw over the years. Much of this uncertainty stems from what has been coined as the shovel in the GROUND problem , when do the taxpayer s value-enhancing activities , such as landscaping or installing sewer systems, convert investment property into dealer property, such that ordinary income tax consequences will result. This paper will explore some of the issues associated with the dealer versus investor challenge and will suggest possible tax planning strategies to achieve a favorable tax result for your client.

THE “SHOVEL IN THE GROUND PROBLEM”: PLANNING FOR REAL ESTATE DEVELOPMENT ACTIVITIES . Nicholas J. Bakatsias . Carruthers & Roth, P.A. P.O. Box 540

Loading..

Tags:

  Development, Activities, Problem, Real, Estate, Ground, Shovels, Shovel in the ground problem, For real estate development activities

Information

Related search queries