Did you receive a 1099 form from the lender to report the amount of the canceled debt?
What exactly are you asking if you can claim?
Hello again dave,
The loss on the sale of a personal residence is never deductible. The only time you can deduct the loss on the sale of property is in the case of investment property, such as an apartment building or home which you rent out.
I asked if you received a 1099 form because if you allow a property to be repossessed or foreclosed on, then any debt which the lender cancelled actually becomes taxable income to you, and they can send you a 1099 form to report the amount of the debt which was forgiven. If you had received such a form, you woud have actually had to include this as income rather than claiming it as a deduction.
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Thank you dave