Commercial Real Estate Interests: Tax Considerations and Strategies on Disposition of Real Property


This practice note discusses voluntary and involuntary dispositions of real property and related tax implications affecting decisions in executing real estate transactions in various situations. In general, all real estate qualifies for capital gain treatment, either as a capital asset or as an asset used in a trade or business. This practice note addresses relevant scenarios; however, it does not contemplate real property inventory or property that is otherwise held primarily for sale to customers in the ordinary course of business.