The complete plan, from buying the land to closing the sale.
Development income is lumpy. Two quiet years, then a closing that puts seven figures on the table in a single quarter. Dealer versus investor status decides whether that gain is ordinary income carrying self-employment tax or a capital gain you can defer, and it is settled by how the project was held long before anyone reaches the closing table. This is the master plan that the other three pillars hang off.
What we typically see: Dealer status assumed, never planned for. Every project sitting inside one entity. Cost segregation ordered after the placed-in-service date. A gain that lands in the worst possible year.
23 pages and 12 categories, written by Jose A. Ramirez, EA. Work through it with your job cost ledger open and see which deductions you have not claimed and which records you still need.
Get the ChecklistThis page is the master plan. The other three go deeper on the pieces that move the most money.
We had been treating every project the same way. Splitting the hold from the build changed what we owed on the sale.
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