The Subdivision of Real Property into Lots for Resale When

question 19

True/False

The subdivision of real property into lots for resale when no substantial physical improvements have been made to the property never causes the gain from sale of the lots to be treated as ordinary income.

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Definitions:

State Governments

The political organizations responsible for governing individual states within a federated country, possessing specific powers as defined by the national constitution.

Interstate Commerce Clause

A provision in the U.S. Constitution granting Congress the power to regulate commerce between states.

Privileges and Immunities Clause

A provision in the United States Constitution that prevents a state from treating citizens of other states in a discriminatory manner.

Necessary and Proper Clause

A provision in the United States Constitution (Article I, Section 8) granting Congress the power to pass all laws considered necessary and proper for carrying out the enumerated list of powers.