Can an llc that buy and sells and rents real property ( homes) treat the property sale gains as long term cap gains and treat all the bus expenses of maintaining the properties, preparing for sale, research, etc as deductions against income? If there is no llc income one year, can the expenses still of set other income from the filers (my) return such as w2 income since it passes through?
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Can an llc that buy and sells and rents real property ( homes) treat the property sale gains as long term cap gains
No. If the business of the LLC is buying and selling rental real estate (i.e., you're a real estate dealer) then the real estate is inventory and any gain on sales are ordinary income.
Can an llc that buy and sells and rents real property ( homes) treat the property sale gains as long term cap gains
No. If the business of the LLC is buying and selling rental real estate (i.e., you're a real estate dealer) then the real estate is inventory and any gain on sales are ordinary income.
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