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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16547
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I have a client who bought a boat years ago and treated it

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I have a client who bought a boat years ago and treated it as a second home, it fit the criteria. He is now selling his first home and will have a capital gain on it, even after the exclusion. Can he sell the boat and take a capital loss to offset it????? Would he have to consider it a rental property?????

MyVirtualCPA :

Hello, and welcome to

MyVirtualCPA :

Unfortunately, the owner cannot recognize a capital loss on the sale of the boat, because it is a personal use asset

MyVirtualCPA :

You must recognize capital gains on the sale of personal use assets, but you are not allowed to recognize capital losses.

MyVirtualCPA :

So the answer to your question is unfortunately, no - he cannot take a capital loss to offset the capital gain.

MyVirtualCPA :

This would not be able to be claimed as a rental property unless he actively rented it and received rental income

MyVirtualCPA :

Is there anything else you need assistance with? If not, please take a moment to rate my response as "excellent" so that I may receive credit for assisting you today

Customer :

I thought that was the case...but just wanted to confirm.

Megan C and 2 other Tax Specialists are ready to help you
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