How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience:  Taxes, Immigration, Labor Relations
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

If I sell a second home for a loss, can I claim that loss as

Resolved Question:

If I sell a second home for a loss, can I claim that loss as a deduction on my income tax return? It use to be my main home, but I moved out of it 2.5 years before it sold and I did not live in it during those 2.5 years. It was not a business property and it was not a rental property.
Submitted: 4 years ago.
Category: Tax
Expert:  Lev replied 4 years ago.
Hi and welcome to Just Answer!
Unfortunately for your situation - the loss realized from the sale of the personal property may not be used to offset other taxable income.
Generally, property held for personal use is a capital asset. Gain from a sale or exchange of that property is a capital gain. Loss from the sale or exchange of that property is not deductible. You can deduct a loss relating to personal-use property only if it results from a casualty or theft.

Let me know if you need any help.
Customer: replied 4 years ago.
If I had made the house a rental property during that time period and it had been rented, would I be able to claim the loss as a deduction?
Expert:  Lev replied 4 years ago.
If you convert a personal property to rental - and later will realize a loss - that loss is fully deductible.
However the basis for determine the loss will be the lesser of your basis and a fair market value of the property at the time of conversion. So - you will not be able to claim as a loss the change of the fair market value before the conversion.
Lev and 2 other Tax Specialists are ready to help you

Related Tax Questions