Sale of Retail Suites of Commercial Property
Taxpayer is an LLC taxed as a partnership. The partners are not real estate developers (3 professionals & 1 real estate agent). The LLC bought commercial land in 2018 and hired a contractor to build a 15000 sqft retail space area divided in about 6 suites of various sizes (marketed as commercial condos). The LLC sold one lot in 2020 and two are under negotiations currently in 2021. My question is would sale of these suites be considered capital gain or ordinary income in nature? If ordinary income is there a strategy to make the unsold suites be considered as capital gains by any chance.