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Good morning and thanks for using JUST ANSWER. Your loss is called a "capital loss". If you have other investment properties, including real estate, stocks and bonds that you have sold and you have a profit or gain those investments, the $80,000 loss can be deducted from those gains. Net capital losses (total capital losses minus totalcapital gains) can only be deducted up to a maximum of $3,000 in a given tax year. Therefore, if you have no capital gains to deduct the losses from, then at the rate of $3000 per year, it will take many, many years to write off the entire loss against your ordinary income.
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