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Real Estate Professional-Short Sale

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    Real Estate Professional-Short Sale

    I realize if a realtor was holding a piece of property and it is involved in a short sale the property loss could be an ordinary loss. When i refer to propery i was assuming a lot or acerage with no depreciation or amortization.

    I have a case where the realtor along with his brother bought a condo in FL for $625,000 and it is being short saled for $200,000. They bought this back in 2007 and when they couldn't flip it they started renting out the unit. Will the loss on this unit be capital or ordinary loss?
    Sabre

    " You don't learn much from the second kick of a mule."

    #2
    I would think...

    it would be treated as loss on sale of rental property, i.e. as Section 1231 loss.
    Evan Appelman, EA

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      #3
      How long did they have it up for rent?

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