Discussion:Spec House
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Spec House
| 24 January 2007 | |
| Hi,
My client bought a piece of land last year and hired a company to build a house. As soon as house was build he sold the house. Should I do sch D? Thank you, | |
| January 24, 2007 | |
| Has he done this before? Will he do this again? If/when it becomes regular, it's business...until then, it can be cap. gain. | |
| 24 January 2007 | |
| He never did this before but will do this again.
Is mortgage interest could be added to basis? | |
| 24 January 2007 | |
| Would not Reg. 1.266-1 apply for the interest during the construction period? | |
| January 24, 2007 | |
| Assumed it was all done within the year. Sorry, good point... | |
| 5 March 2008 | |
| Same situation; a bit different...client has gone to Block for years and since he rents me my home, he wanted to know what I can do for him. He purchased a home in San Antonio TX as a spec home....he did the upgrades, completed it and sold it at a loss. He is not a real estate investor just a one time buyer. He already took the mtg interest (from Block) on his primary residence, so I am reconstructing the basis of the home. I think I have a good figure to work with, but how is his loss treated, Sch D? He only owed it from 8/21/06 to 5/11/07 so is short term, but proseries is not allowing me to enter the home sale as an investment on the Sch D. Should it go elsewhere first?
I may not even do this return; I am running true numbers; he goes to Block and ummmm fibs about his marital status, my rental home, etc. etc. but he came to me to come clean....if I can't get him the refund he wants, then back to Block to do it as they always have.... | |
Bottom Line (talk|edits) said: | 5 March 2008 |
| Make sure you get some money for this "looksee" | |
| 5 March 2008 | |
| Thanks BL; ran the #'s...block has it wrong but this is more than I can sign my name to. He is claiming single, he takes itemized deductions, is taking all the expenses that he pays on his main home and attaching them to the rental property....now I look at Block's returns and they have him actively participating in this passive activity. Gotta back off this one. Let Block do them single again, let them get the tons of $$ in refunds...but I am going to stay out of it. No repairs to my rental house, nothing at all, has claimed very little of the rent I have paid and actively participating? I think not.
Homestead on both homes, can of worms,,,,but I had to run the #'s....he is selling it so this is the one I am moving out of.... So be it but I will sleep tonight...thanks again! | |
| March 5, 2008 | |
| Sounds like Sch. D to me. I don't understand when you say Proseries won't let you...won't let you what? Bot Date, sale date, sale amount, cost, done. It's arguing with you? Heh heh... or hee hee hee depending. But he's got to pick, biz or not? Sounds like not, so Sch. D is it. Losses limited to 3k per year. | |
| 5 March 2008 | |
| Sorry; day late dollar short...got it to calculate it...just drop down asked stocks, etc. Got it to allow the deduction, but for the other stuff, no can do. Thanks JR and YES it is hehehehehehe | |
To join in on this discussion, you must first
log in.
