Capital Gains. How is a Person buying & Selling different than a true Home builder
To anyone that can answer my question,
I'm interested in how a homebuilder pays for a home using a construction loan, and avoids Capital Gains when he immediately sells the house. Or is this not possible. The essence of the question:
How does "Joe Blow" differentiate from a True Homebuilder when it comes down to building and selling homes
I'm aware that most builders force there customers to fund the project with construction loans. How does a LLC company who buys land, hoists a modular on a foundation, and then sells the home avoid Capital Gains? Is this even possible since the essence of the business is BUILDING homes?
Thank you,
Tyce
To anyone that can answer my question,
I'm interested in how a homebuilder pays for a home using a construction loan, and avoids Capital Gains when he immediately sells the house. Or is this not possible. The essence of the question:
How does "Joe Blow" differentiate from a True Homebuilder when it comes down to building and selling homes
I'm aware that most builders force there customers to fund the project with construction loans. How does a LLC company who buys land, hoists a modular on a foundation, and then sells the home avoid Capital Gains? Is this even possible since the essence of the business is BUILDING homes?
Thank you,
Tyce