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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 13527
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I bought my house in Iowa in year 2006 and lived there. I

Resolved Question:

I bought my house in Iowa in year 2006 and lived there.
I used part of my house as home office for consulting service in year 2009. I paid business income tax in federal tax return in 2009, but didn’t claim the home office use, though I used it for such purpose.

Then since Nov. 2009 I moved to Ohio and the house was vacated until 2012, and sold in 2012 with a big loss. Is it possible to claim this house as a partial investment property for tax deduction, for the house sale loss for year 2012?
Submitted: 1 year ago.
Category: Tax
Expert:  Megan C replied 1 year ago.

MyVirtualCPA :

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

MyVirtualCPA :

Unfortunately you cannot take a loss on a personal use asset, and your former home is a personal use asset.

MyVirtualCPA :

Having a home office did not make it a business asset

Expert:  Megan C replied 1 year ago.
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Expert:  Megan C replied 1 year ago.
Thank you for your question. I'm sorry, but I see you were unable to join our chat.

To answer your question, you cannot deduct any of the loss on the sale of your home even though you made home office deductions. This is still a personal use asset. Now, had you rented the property from 2009 to 2012 then you would have been able to take a loss on the property.

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Customer: replied 1 year ago.


Before my future home sale, how long shall I rent the house in order to claim it as an investment property? For example, after I lived in the house for 2 years. Thank you.

Expert:  Megan C replied 1 year ago.
I would rent for at least one year. Your basis would be the lower of what you paid for the house or the fair market value at the date of conversion. This ensures that any loss attributed to a decrease in home value while you lived in the home would not be claimed.

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Thank you so much for allowing me to help you with your questions. I have done my best to provide information which will be helpful to you. If I have not fully addressed your questions or if you have any follow up questions, or if I have misinterpreted your questions in any way, please do not rate me yet, but simply ask a follow up question without rating so I can provide you with a fully satisfactory answer. If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service with 3, 4, or 5 faces/stars so I can receive credit for helping you today. I thank you in advance for taking the time to provide me a positive rating!


Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 13527
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Megan C and 5 other Tax Specialists are ready to help you
Expert:  Megan C replied 1 year ago.
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