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Subject:  Re: Deemed Sale of Personal Residence Date:  2/21/2001  12:59 PM
Author:  kktice Number:  46888 of 127613

I don't think that the "deemed sale" idea works. It is certainly an agressive interpretation, but I think that it won't work on a couple accounts. The 1997 Act sec 311(e)(1)(B) states in part "any other capital asset or property used in the trade or business...". I find it hard to believe that "capital asset" can stand alone-it is tied to the phrase "used in trade or business". I think that to view it otherwise is contrary to Congressional intent when this section was written. It could also be argued that a "deemed sale" lacks economic substance-which in my view means that it won't fly.

No, I am not an IRS agent.

disclaimer-This is not tax advice, and may not be viewed as such nor relied upon. It is only a discussion on a public discussion board. It is worth exactly what you paid for it-absolutely nothing. Your mileage may vary.
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