Sale of investment house

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  • asoaringhawk
    Junior Member
    • Mar 2008
    • 1

    #1

    Sale of investment house

    Using form 4797, how should the sale of a house purchased for investment (a flip so to speak) be classified if held less than one year or more than one year? As Section 1231 or Section 1250?
  • solomon
    Senior Member
    • Aug 2006
    • 1012

    #2
    Originally posted by asoaringhawk
    Using form 4797, how should the sale of a house purchased for investment (a flip so to speak) be classified if held less than one year or more than one year? As Section 1231 or Section 1250?
    Is this a trade/business or a one time event?

    Comment

    • Bees Knees
      Senior Member
      • May 2005
      • 5456

      #3
      Originally posted by asoaringhawk
      Using form 4797, how should the sale of a house purchased for investment (a flip so to speak) be classified if held less than one year or more than one year? As Section 1231 or Section 1250?
      Are you asking about your own tax return?

      Comment

      • gkaiseril
        Senior Member
        • Feb 2007
        • 567

        #4
        Originally posted by asoaringhawk
        Using form 4797, how should the sale of a house purchased for investment (a flip so to speak) be classified if held less than one year or more than one year? As Section 1231 or Section 1250?
        Was this an "investment" or used in a business?

        Are you a Real Estate professional?

        If so, is the personal or business inventory?

        What does a tax free exchange have to do with depreciable property?

        Was this "investment" depreciated?

        Are you exchanging this property for anothe similar property?

        The year holding period is the number of days from the purchase date to the sale date.

        You appear to be very confused. Consider consulting a tax professional.

        Comment

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