As per the Supreme Court Case, William Malat (383 US 569), for all properties that we acquire it is our primary intent to keep the property for investment/rental purposes along with long-term capital appreciation. We will only the sell the property if our original and primary investment intent is changed by unanticipated events generally beyond our control. Examples of such events are:
Need for working capital.[Martin v. U.S., (1954, DC GA) 119 F Supp 468, 45 AFTR 734, 54-1 USTC ¶ 9157].
Financially unable to continue as planned. [Dahlstrom, TC Memo 1968-197; Jersey Land and Development Corp v. US, 3/21/75, DC-NJ, 35 AFTR 2d 75-1157, 75-1 USTC ].
Special or changed market conditions. [Pontchartrain Park Homes, Inc. 349 F2d, 416, affg TC Memo 1963.; Heller Trust, 382, F.2d 675 (1967); Scottwood Development Co., 26 TC Memo, 855 (1967); Sweeney, TC Memo 1964-324; Dillon v. Com. 213 F.2d, 218; Tibbals, TC Memo 1958-44; Farry 13 TC 8(A)].
Pressure from creditors. [Lomas & Nettleton Financial Corp. (180, DC Tax) 488 F. Dressen, (1952) 17 TC 1443(A).]
Disagreement with Co-owners. [Flose, Jr., TC Memo 1973-98]
New investment plans. [Maddux Construction Co. (1970) 54 TC 1278 ]
Unsuitable for particular purpose(s), making it impractical to proceed[Est. Dean, TC Memo 1975-137; Pasadena Investment Co., (1963, DC TX) 223 F Supp 639, 12 AFTR 2d 5683, 63-2 USTC 9767.]
Building or zoning restrictions [Lobello v. Dunlap, (1954, CA5) 210 F2d 465, 45 AFTR 337, 54-1 USTC ¶ 9234; Edwards, P., TC Memo 9/10/53, 12 TCM 1045]
Disaster such as fire or flood. [Tri-S Corp, 68-2 USTC 9541; Ridgewood Land Co. Inc. TC Memo 1972-16; Fabiani, TC Memo 1973-203; Biedermann, (1977) 68 TC1]
Abandonment of investment plans, too costly.[Lowery, TC Memo 1964-30; Edwards Industries, TC Memo, 1974-120.]
Abandonment of real estate to go into other full time employment. [Vaughn, TC Memo, 5/14/48.]
Abandonment in a forced bulk sale and termination of the joint venture. [Silversmith v US, 12/5/78, 79-1 USTC 9117]
Property disposed of through foreclosure. [Penman, 4/9/57, DC-FL, 52 AFTR 1686, 57-1 USTC; Ayling, (1959) 32 TC 704(A); Loewenberg, TC Memo 10/11/48, 7 TCM 702; Lloyd v US, 6/12/61 DC-WA, 8 AFTR 2d 5586]
Partnership or corporation dissolution and liquidation. [Haynsworth v. U.S., 11/17/81, Ct Cl: Morse v. U.S., (1967) 371 F2d 474.]
Retirement or advanced age. [Rylander, v. U.S. 7/24/56, DC-CA, 51 AFTR 1658, 56-2 USTC ¶ 9863; Williams v. U.S., (1962, DC CO) 212 F Supp 805, 11 AFTR 2d 387, 63-1 USTC ¶ 9161].
Property acquired by inheritance or gift. [John R. Hopkins, 15 T.C. 160. Schwerin, Helen Trust, TC Memo 3/11/54, 13 TCM 202]
Poor health. [Lowery, TC Memo 1964-30; Pasadena Golf Course Inc. TC Memo 1975-237]
Death of major principal. [Simmers & Son, Inc., TC Memo 1968-150]