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