Aircraft tax question

TaxSrv wrote:

You probably forced the software to consider it investment property,
which it wasn't. We can in provable circumstances hang onto a former
home as investment property, but 9 months of just fixing up for sale
won't make it such property in IRS eyes, no way.

How about 14 years of fixing it up? That's what I did, and I have before and
after photos to prove it. I pretty much gutted the place and rebuilt from scratch.

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

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

"George Patterson" wrote in message
newsntkf.2786$Yh2.496@trndny01...
TaxSrv wrote:

You probably forced the software to consider it investment property,
which it wasn't. We can in provable circumstances hang onto a
former
home as investment property, but 9 months of just fixing up for sale
won't make it such property in IRS eyes, no way.

How about 14 years of fixing it up? That's what I did, and I have
before and after photos to prove it. I pretty much gutted the place
and rebuilt from scratch.

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

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.

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)

The property is either your primary residence or some sort of
investment. The fact that you put money into the property changes the
financial basis - IRS word for original cost plus improvements. That you
improved the property does not in itself change the type of property..

"George Patterson" wrote in message
news:q3ukf.825$Qf5.702@trndny07...
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.

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)

On Sun, 04 Dec 2005 14:32:37 GMT, "sfb" wrote:

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.

And your point, in the context of the discussion is ???

The fact that he moved out of the house before selling it would not, as I
wrote, be an argument in favor of treating it as an investment property.


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

I just wanted to **** you off.

"Ron Rosenfeld" wrote in message
news
On Sun, 04 Dec 2005 14:32:37 GMT, "sfb" wrote:

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.

And your point, in the context of the discussion is ???

The fact that he moved out of the house before selling it would not,
as I
wrote, be an argument in favor of treating it as an investment
property.


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

On Sun, 04 Dec 2005 22:33:19 GMT, "sfb" wrote:

I just wanted to **** you off.

I expected more.


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

sfb wrote:
The property is either your primary residence or some sort of
investment. The fact that you put money into the property changes the
financial basis - IRS word for original cost plus improvements. That you
improved the property does not in itself change the type of property..

Thanks. That makes it clear.

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