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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
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Experience:  10 years experience
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I sold my house at a loss and moved out of state and into my

Customer Question

I sold my house at a loss and moved out of state and into my son's house. i I sold my house at a loss. Can i deduct anything such as improvements on the house?
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: June 2016 i sold my house for $80,000 which is what it was appraised for
JA: Is there anything else important you think the Accountant should know?
Customer: in Memphis, Tn. i originally paid $87,500 for it and made many expensive imporvements. Can i claim any of the improvements and the loss of what i actually paid for the house?
Submitted: 4 months ago.
Category: Tax
Expert:  emc011075 replied 4 months ago.

Hi. My name is ***** ***** I will be happy to help.

Unfortunately losses from selling a personal property, including main house are not deductible. You can only deduct loss from sale of business or investment property.

Customer: replied 4 months ago.
i asked a second question and no reply. I was always told to keep receipts such as when i put on a new roof, new driveway,
new flooring, etc. and that i would be allowed to deduct these items when i sold my house. i am confused.
Expert:  emc011075 replied 4 months ago.

I do not see any follow up question here. Did you open a new question?

The cost of improvements can be used to reduce capital gains but not to increase capital losses. You can deduct the cost of improvements but you cannot claim the loss.

Expert:  emc011075 replied 4 months ago.

Here's how you calculate your capital gain or loss:

Sale price

- purchase price

- improvements

- expenses of sale

= capital gain or capital loss.

You have to claim capital gain but you are not allowed to claim capital loss if you sold a personal property.

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