The Mann Report published an article by Director Robert Johnson about the discharge of qualified real property business indebtedness.
By Robert Johnson, Director, Tax & Business Services
Real property used in a trade or business is depreciable, while real property held for sale is considered inventory and thus not depreciable. Since one of the provisions of the income exclusion on QRPBI requires a reduction of the depreciable basis, this would exclude real property held for sale from getting the QRPBI income exclusion.
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