@ScruffyCurmudgeon wrote:
- The sale would not be considered the sale of a personal residence but instead as an "investment asset"
Whether the sale is that of personal use property (i.e., a personal residence) or investment property would be dependent upon how the property was being used.
If a beneficiary occupied the property, for example, then the house would be considered to be held for personal use. On the other hand, it the estate held the property for appreciation (or a similar purpose, including if the house was vacant), then the house would be considered to be held for investment.
The foregoing determination is really only critical if there is a loss on the sale. If there is a gain, it is taxable regardless while a loss can only be recognized if the house were held as an investment.
