Posted by David Krulac on April 30, 2000 at 20:18:16:
the capital gains rate for over 1 year is 20% wheras the ordinary rate is 28% for a lot of people and up to 39.6% for some. In the highest bracket capital gains is almost a 50% savings in federal income taxes. we just sold a property with a delayed settlement to catch the more than one year threshold.
And as Tom pointed out its not a good thing to be a dealer and lose capital gains treatment, lose seller benefit of instalment sales and to lose the ability to do 1031 tax free exchanges, all three are porhibited by a dealer!