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