Posted by John K Haslach, CPA, MST on April 07, 2006 at 15:50:25:
Why wouldn’t you believe your CPA and instead ask people who are not experts?
If your original intention was to fix it up and sell it, it is taxed as ordinary income to you. If your original intention was to fix it up to hold and rent, but things changed and you decided to sell it, it could be taxed as long term capital gain if held more than one year.
However, if you choose the long term capital gain route and are audited by the IRS, you will need to convince them your intention was to hold it to rent.