Level 11

Those are all good questions but I'm left wondering how long the taxpayer owned the house.   Five weeks, five months or five years?  

The choice between Schedules C and D shouldn't depend on length of ownership, but at least if it's less than a year you don't have to worry about lower capital-gain rates.  

Schedule C is also useful when losing more than $3,000 on these deals, which many money-pit investors find themselves falling into eventually.  

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