In 2008, I bought and sold a house for investment, making a small profit. Can I report this profit as a short-term capital gain (thus ofsetting other losses) or must I report it as ordinary income?
Where do I report this transaction? The instructions for Form 4797 says I must use Part II: Ordinary Gains and Losses. Must I use Part II of Form 4797 or can I report this transaction directly on Schedule D, or can I use Part III of Form 4797?
Note: I owned this house only a few months, never put it into service, and did not deduct depreciation.
Thank you for your help.