Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.
Good afternoon. You do have a tax
. But, you will not have any gain on the sale. Rather, this will generate a long term capital
loss for you. Pursuant to IRS
Tax Topic 409 (http://www.irs.gov/taxtopics/tc409.html): Capital gains
and deductible capital losses
are reported on Form 1040
, Schedule D
(PDF), Capital Gains and Losses, and on Form
8949 (PDF), Sales
and other Dispositions of Capital Assets
. If your capital losses exceed your capital gains, the amount of the excess loss that can be claimed is the lesser of $3,000, ($1,500 if you are married filing separately
) or your total net loss as shown on line 16 of the Form 1040, Schedule D (PDF).
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