AccountingBLOCK

Any ideas on the following:

Taxpayer A buys a house in 12/06. Taxpayer A get a new job in different state and moves on 6/07. They rent the house in 09/07. ( Uses Sch E for 2007 taxes). The renter want to buy the house in May 08.

Questions:

Rental property less than one year. Short Term Gain?

Basis used: Rental property? When they purchased it?

Because the move was job related, is a partial exclusion granted (even though rented for less than the year)

Is there any questions I am leaving out? The IRS pubs does not cover similar examples.

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Owner Zindah, Inc.
A.A Accounting
B.S Accounting