Time is not the key factor: Council of State redefines tax treatment of real estate sales
The Council of State specified that, for income tax purposes, it does not matter how long a property remains in the taxpayer’s assets, but rather whether its sale is part of the ordinary course of business.
In that case, the profit must be treated as ordinary income, even if the property was owned for decades. This ruling reaffirms that the decisive criterion is not the age of the asset, but the commercial nature of the transaction.