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Discussion Forum Index --> Tax Questions --> Business Use of a Second Residence
Skq9545 (talk|edits) said:
| 22 March 2006
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| If an individual owns a second residence, which is 250 miles from the home address, and they use that second property mostly to conduct business. Can business use of that residence be taken on a an 8829?
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JR1 (talk|edits) said:
| 22 March 2006
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| Hmmm. Well, your argument needs refining! You call it a residence, and then say it's used mostly for biz. Which is it?
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Skq9545 (talk|edits) said:
| 22 March 2006
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| Well, I am told that 80% of the time it is used for business. It is a house.
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Skq9545 (talk|edits) said:
| 22 March 2006
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| To clarify more. There is a home where they live most of the time and when they have land sales, they go to this other residence, which is 250 miles away to conduct the land sales. They may use the house as a vacation home for short periods during the summer.
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Dennis (talk|edits) said:
| 22 March 2006
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| So your clients are selling off the land around their vacation home?
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Skq9545 (talk|edits) said:
| 23 March 2006
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| Dennis: He is selling land in the area where his second home is located. I don't know if it is right around his property. I am checking with the IRS to determine if he is an investor, trader or dealer. Some of the land he finances himself, so there is installment contract considerations. He sold about 108 parcels of land last year. There is a section in the Master tax guide on subdividing land. Evidently he did subdivide some land in another county. It is very interesting and trying to get an answer from the IRS is not easy.
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Dennis (talk|edits) said:
| 23 March 2006
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| Aha, same client as other question. Sounds like a dealer to me, which means you can take the whole house as an office. On the other hand I think he is ineligible for installment sales, all his income is ordinary and subject to SE tax. Even interest on mortgages.
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