Moving out of your primary residence prior to selling it is perfectly
normal which is why the IRS has the 2 out of 5 year rule - lived there 2
in the 5 before selling it.

"Ron Rosenfeld" wrote in message
...
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)