The Absorption Rate is an estimate of the expected annual sales or new occupancy of a particular type of land use, providing a measurement of how quickly available real estate inventory is being sold or leased.
In real estate, a dealer (tax) is an individual or entity that buys and sells property for their own account, with such property considered as inventory. Consequently, any gains from the sale are treated as ordinary income for tax purposes.
Inventory in real estate refers to property held for sale or properties utilized in the development of goods destined for sale, which does not qualify for capital gains tax treatment.
An ordinary loss is a loss that is deductible against ordinary income for income tax purposes and is generally more beneficial to a taxpayer than a capital loss, which has limitations on deductibility.
