I sold an SFH (Single Family House) owned by my LLC (Single member, Disregarded Entity; NO other income/activity in that LLC) in 2016, for a Gain$. The house was purchased more than a year ago (for repairing and renting out purposes, but never got around to repairing it). In essence, the house was flipped for a gain.
So, If a single-member LLC owns a property for more than a year and then sells it, are the profits deemed "business income" or "capital gains"?
Unless you are a dealer in real property, profits from the sale of real property are taxed as capital gains (long-term if you have held the property for more a year).
Please read this article for more information:
http://www.snydercohn.com/2012/09/is-it-capital-gain-or-ordinary-income/
Thank you, TurboTaxMinhT, for your prompt response. I concur. However, Can I "elect" to report it as 'Biz. Income' rather than Cap. Gains (I have my own reasons to elect to do so)? If so, how do I do it in TurboTax? TurboTax currently sees this as Cap Gains; which is, in accordance with the Answer. Thanks.