Real estate professional for tax purposes

Assignment Help Operation Management
Reference no: EM132193480

Jon received a substantial inheritance from his deceased grandfather, who expressed in his will his desire that Jon invest at least 75% of the money in real estate. Jon is in the market for his first home and plans to make a down payment of 20% of the home's purchase price and finance the rest with a mortgage. Jon wants to purchase some investment property in the form of residential rental real estate and is thinking about starting a real estate development company to convert a 120-acre parcel of raw land, on which he owns an option to buy, into residential building lots ?

Jon exercises the option to buy the raw land, will this be considered a "trade or business" of real estate development and what this means to Jon in terms of the tax treatment of the income he receives on the lot sales?

Jon mentions wants to be qualified as a "real estate professional" for tax purposes, is this possible?

Reference no: EM132193480

Questions Cloud

Define one sociological theory from readings : Complete a 6-8 page final paper - Define one sociological theory from our readings/materials that relates to your chosen social problem
True of partnerships and corporations : Which of the following is true of partnerships and corporations?
Describe a recent trend in the macroeconomic indicator : Describe a recent trend in the macroeconomic indicator or policy. Include a graph, chart, or table that illustrates the observed trend.
How important is brand value : How important is brand value? How is Pepsi positioned to compete in the next decade?
Real estate professional for tax purposes : Jon mentions wants to be qualified as a "real estate professional" for tax purposes, is this possible?
Develop a digital learning unit plan : Develop a Digital Learning Unit Plan.The unit must include learning activities which introduce new content,directions and resources needed to complete the unit.
About developing connection with person : One of the best things about developing a connection with a person is that you might never know when they may be a resource to you.
Describes the impact of globalization on us businesses : Prepare a 4-6 page paper that describes the impact of globalization on U.S. businesses. In your analysis, please include information about the impact.
Define sales and operations planning : Define sales and operations planning. What role does it play in aggregate planning?

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd