Posted by dealmaker on January 17, 2006 at 08:16:09:
I could go look up my tax return for '01 (last time I got one back), or I could just think through how the IRS would (are they going to give YOU the advantage?). But either way I come up with the same answer: Your new holding period is from the date of Trustee’s Sale (or judgement depending on your state) to the date of the next sale.
Heck, if we could do it the other way, I’d ALWAYS make sure my FIRST buyer was so unqualified I’d be guaranteed of getting the ppty back!
I think I got most of my questions answered, but there is one little mystery. What is my holding period?
here are facts: I repossessed a seller-financed property. I was reporting the sale on the installment method. the gain in those note payments was short term capital gain, because I sold the property 3 months after I acquired it. Now I again own the property. I figured out that my basis is determined under Section 1038. I take my original basis, add to it reported gains, collection expenses, etc., and start over.
But what about that pesky holding period? Do I get to count only the original 3 months, or do I get to count the 13 months over which I was collecting note payments?