Quote Originally Posted by KW View Post
It all hinges on the "Purpose" of acquisition which is a subjective question not one of fact. Hence you cannot be "technically wrong".
There was a great property case recently where a family built and moved houses about 9 times in 6 years. Every house they built they 'intended to live in for life' but each one they had a fantastic reason to leave (school to far away, to far from parents, to close to parents, creapy neighbors, allergic to carpet, being about to only turn left to get to school (no joke), etc). Judge called bullsh!t and overruled their stated intent and rule their real intent was to profit from selling.

Even funnier was the fact they lost money on most of the transactions, with only the last two (double garages seemed to be the key) pushing them into a tax paying position.