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Nonqualified Use

Technical topics regarding tax preparation.
#1
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Client bought a home on 1/1/00. He lived in it for 7 years.

He then bought another home on 1/1/07 and moved out, converting the original dwelling to a second home.

He moved back into the original dwelling (former second home), 1/1/15, after selling his then primary residence.

He then sold the original dwelling (former second home) on 12/31/18.

My understanding is that years 2007 - 2014 represent nonqualified use as it pertains to the original dwelling and Sec. 121. Correct?

No rents were received from 2007 - 2014 and no depreciation was taken.

Thanks for any confirmation...
 

#2
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I'm pretty sure that there's no such thing, by definition, as "nonqualified use" prior to 2009.

Here's what IRC Section 121(b)(5)(C)(i) says in that regard:
"(C) Period of nonqualified use
For purposes of this paragraph—
(i) In general
The term “period of nonqualified use” means any period (other than the portion of any period preceding January 1, 2009) during which the property is not used as the principal residence of the taxpayer or the taxpayer’s spouse or former spouse.
 

#3
makbo  
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Harry Boscoe wrote:I'm pretty sure that there's no such thing, by definition, as "nonqualified use" prior to 2009.

What about the period from 2009 to 2014?
 

#4
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Correct. My apologies. As Harry said, 2009 to 2014.
 

#5
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What about the period from 2009 to 2014?

What about it, makbo?
 

#6
makbo  
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Harry Boscoe wrote:
What about the period from 2009 to 2014?
What about it, makbo?

taxtried wrote:Correct. My apologies. As Harry said, 2009 to 2014.
 

#7
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Yes, and...?
 


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