S-Corp Developer

Bought land and had spec house built in 2004 within my S-Corp. Has not sold at this point. Will I be paying taxes on the increased value of the S-Corp at this point for 2004. Or do I only count the house as inventory in the year I sell it?

And yes I am going to see my tax professional. (just looking for an advance position on this)

Comments(2)

  • NewKidinTown213th March, 2005

    Dealer inventory is only considered acquired in the year it is sold. You just have to accrue your holding costs until the property is sold.

  • tcikevin13th March, 2005

    Thanks NewKid, it made sense that this is how it works.

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