Mary is both a real estate developer and the owner and manager of residential real estate. Mary is retiring and is going to sell both the land he is holding for future development and the rental properties he owns. Straight-line depreciation was used to depreciate the rental real estate. The rental properties will be sold at a substantial loss, and the development property will be sold at a substantial gain. What are the nature of these gains and losses?
I am trying to figure out the important facts of the case. Any suggestions.
I'm guessing that everything is a 1231 asset since it's all business use. Would he be an active participant? How can I tell from what I have? Any suggestions are appreciated. We don't have 1250 recapture since it was all straight line realty. What issues do you see? How might you present them?
2006-11-12
02:42:35
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4 answers
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asked by
Tommy L
1
in
United States