@bonrea2000 wrote:
They owned it for almost 11 years. Never lived in it and never rented it.
The classification of the property would be dependent upon the intent of the parties.
However, if there had been no attempts whatsoever to rent the property it would not be considered rental real estate.
If the parties were holding the property for future appreciation, it could be considered to have been held for investment purposes but, if there was a gain on the sale (clearly likely and implied by your question), then it makes little difference whether the property was held for investment or personal use (such as a second home).
