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Subject:  Re: Loss on real estate sale Date:  8/22/2000  7:00 PM
Author:  TMFTaxes Number:  38994 of 130757

<<I think this may need some clarification, it seems that words with different meanings are use to say the same thing. To my thinking the words purely for investment of a second home are conflicting. If the house is a second home, like a winter or summer house, a loss on the sale would be a personal loss and not deductable at all. If you own a vacant house that is just sitting unused, its deem held for investment and any loss on its sale is capital, and can only offset $3,000 of ordinary income a year.>>

ABSOLUTELY CORRECT, EG. Great catch. I was trying to make a point and got the words all screwed up...and provided a simply AWFUL example. Thanks to EG for catching it and clearing it up.

TMF Taxes

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