Bill L. and Nancy L. Turner - Page 8




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          Newcombe v. Commissioner, 54 T.C. 1298, 1300-1301 (1970), the               
          Court set forth a number of factors to be considered to determine           
          whether a personal residence had been converted to property held            
          for the production of income.  In the case at bar, the relevant             
          factors are:  (1) Petitioners actually occupied the Belair                  
          property as their personal residence; (2) the Belair property was           
          not occupied from the time petitioners moved out of it until its            
          subsequent sale and therefore was potentially available to                  
          petitioners for their personal use throughout this period; and              
          (3) the Belair property was unavailable for rent, due to the                
          renovation, and by the time petitioners could have rented the               
          Belair property they had decided “to get rid of” the Belair                 
          property.7  Id.; Henry v. Commissioner, supra.                              
               Merely offering the property for sale does not necessarily             
          convert it into property held for the production of income.                 
          Newcombe v. Commissioner, supra at 1301.  Placing property on the           
          market for immediate sale, at or shortly after the time it is               
          abandoned as a residence, will ordinarily be strong evidence that           
          a taxpayer is not holding the property for postconversion                   
          appreciation in value.  Id. at 1302.  Under such circumstances,             
          only a very exceptional situation will permit a finding that the            


               7  Furthermore, even if petitioners had attempted to rent              
          the Belair property, as they claimed, unsuccessful efforts to               
          rent property have been held to be insufficient to accomplish a             
          conversion.  Gevirtz v. Commissioner, 123 F.2d 707 (2d Cir.                 
          1941); Grammer v. Commissioner, 12 T.C. 34, 37 (1949).                      




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