I bought a house in October 2023, which included a second lot.
I'll be selling the house before I've owned it a year. I'll sell the lot after owning it for just over 12 months (October 2023 to November 2024).
The house is a one-off flip. I won't be buying any more houses to flip them. I think I'll be able to pay capital gains on both the house and the lot, rather than treating the profits as active income, if I'm only doing it once, although I think this is a bit of a murky area.
If that's correct, then I'd pay short-term capital gains on the house profits and long-term gains on the lot profits. Is that correct? And when the IRS stipulates that you must own a property for at least a year in order to pay long-term capital gains, is that a calendar year or the actual length of ownership in months?
Thanks for any thoughts you might have on this.
