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Financial Planning / Tax Strategies


Subject:  Re: Deemed Sale of Personal Residence Date:  2/20/2001  9:13 PM
Author:  Bob78164 Number:  46853 of 127514

ataxwitch writes:

You are recommending combining the "deemed sale" rules and the exclusion of gain on sale of personal residence rules. How do you reconcile the fact that the deemed sale are only supposed to apply assets used in the taxpayer's trade or business?

Did I miss something?

I reply:

See post no. 15324 on this board for my discussion of this issue, in response to this very point raised by JAFO31. In summary, I believe that the two categories of property for which "deemed sale" treatment is available are (1) capital assets, and (2) property used in the trade or business. The taxpayer's personal residence is a capital asset; that's why capital gains taxes are due, unless the gain is excludable. --Bob
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