On Sun, 04 Dec 2005 04:15:18 GMT, George Patterson
wrote:

sfb wrote:
14 years of improvements changes the basis not the type of property from
primary residence to investment.

I'm not sure what you mean. Are you saying the property was investment?

George Patterson
Coffee is only a way of stealing time that should by rights belong to
your slightly older self.

Since you moved out of the house nine months before selling it, the burden
of proof will be on you to prove to the IRS that the property was, in fact,
being held for investment purposes.

So far, you've presented no evidence for that.

Investment property is property that produces investment income.

Did your property ever produce income?

Did you advertise it for rent?

Did you actually rent it out?

Did you use the proceeds to purchase another property that you are clearly
using as "investment property"?

Since it was your main residence prior to the sale, and since you spent the
nine months between moving out and selling it engaged in "fixup"
activities, and since it does not appear that you actually engaged in any
activities to support the fact that you really considered this as an
investment property, I think you would have a difficult time proving to the
IRS that it should, in fact, be treated as an investment property, rather
than as your primary residence.

BWTFDIK?


Ron (EPM) (N5843Q, Mooney M20E) (CP, ASEL, ASES, IA)