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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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This is not a dup: I inherited property with my mother and sister whic

Customer Question

I inherited property with my mother and sister which was sold at a loss. My mother's part was 50%, my sister and I each got 25%. I understand that I can only declare my 25% of the loss.My question is about the deducting the loss (not how much I report - I understand that's 25% but rather how muchI can claim). My part of the loss is $11,000. I see the IRS only allows a deduction of $3000. Can I take the full $3000 off on my return - or does the $3000 have to split between me and my mother and sister. We have NO other capital gains - just this loss.Or can we ALL take $3000 off since we all file separate returns? (This is the main question - can we ALL take the $3000?)
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.
Hi. My name is ***** ***** I will be happy to help you. As long as the property wasn't used for personal purposes (one of you lived there) you can deduct the loss. Depending on your individual circumstances, each of you can claim up to 3K of capital loss and you will carry over the rest to the future years. If you have other capital gains, you can use the losses to offset your other capital gains. For instance, if you sold stock with 3,500 gain, you can take 3,500 of your loses to eliminate the stock gain and claim additional 3K loss. You will carryover 4,500 to next year (11000 - 3,500 - 3000 = 4,500).