"dyu9999[at]gmail.com" <dyu9999[at]gmail.com> wrote:

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No, adjust your basis.

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If this is a second residence.

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Well at best it would be an investment expense.

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If this is investment property, it goes on Sch. D.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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Thanks you so much for the information. I really apprecait
it.

On 2) Do you mean I should adjust my sale prices with the
repairs and improvement ?

2.1) For mortage interest, do I just deduct them on Schedule
A together with the mortage interest for my primary home ?

3) You mean I can not deduct insurance premiums if treated
as investment property ?

4) I use schedule D for my gain/loss on stock trading, I
guess my case is really a capital gain/loss case. I was
wondering where to list and deduct all those items mentioned
above ? Is Scehdule-D has place to fill in or there are
other forms I need to use ?

Thanks again

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dyu9999[at]gmail.com wrote:

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Careful: Turning over multiple properties while holding
them simultaneously could be considered inventory. [The
last time I actually saw this situation, that taxpayer
usually had about 15 properties at any one time - so such a
determination was clearly made.] With only 3 properties,
you're in a gray area between investment and business.

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Repairs & Improvements: NO - capitalize them into the sale.
Interest expense: Depends on the treatment. If not
business, see Form 4952.

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Only as business expenses.

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Maybe Schedule C and Form 4797, or Schedule D (for the
actual sale).

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First of all, a "vacation home" is owner-occupied at some
point. Your's aren't.

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I would appreciate any information on this.

I bought three houses and kept them for a year and sold all
of them ( they are all non-occupied for the period, I have
my own house separately )

1) Are these houses qualified for "investment houses" ? Do I
have limitation on tax deductions?

2) What items are deductible? points, mortage interest,
commissions, repairs, improvement?

3) Are insurance premiums, utilities also deductible ?

4) What form do I need to use in addition to schedule E ?

5) What is the difference between "vacation home" and
"investment homes" in term of tax deductions?

THanks mcuh!

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