Capital gain/Ordinary Income - Spidell

Capital gain/Ordinary Income

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Message Board Capital gain/Ordinary Income

This topic contains 1 reply, has 2 voices, and was last updated by Lynn Freer 3 months, 1 week ago.

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  • #176178

    If an LLC elects capital gain treatment/ordinary gain treatment on sale of real estate, does the tax code look at the LLC or the individual people to determine what type of gain it is? Is this election permanent???

  • #176214
    Lynn Freer

    Not sure what you mean about “electing” capital gain treatment. If you are talking about an LLC that does flipping or has houses in inventory then it is possible it is a trade or business the determination is made at the LLC level.