Good Afternoon Community,

I have a question about selling the asset Construction in Progress.  I have a client that is in the process of selling an uncompleted shopping center.  The last few years I have been accumulating costs in a Construction in Progress Account because this company is building a shopping center to rent out to businesses.  Somebody approached them a couple of weeks ago before this building has been put into service.  From the research that I have done if they sell at a loss it will be a short term capital loss.  It will not qualify for ordinary loss treatment because it was not in business use for at least one year.  If they sell at a gain I assume the same will be true that it will be a short term capital gain because it was not in business use for over one year.  Has anybody had any experience with this and how did you handle it.

Thanks,

John Skouberdis