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I have a -term real estate investment that I sold at a loss,

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I have a long-term...

I have a long-term real estate investment that I sold at a loss, Can I deduct the full loss in the year it was sold.

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My partner and I renovated a real estate investment property that we sold at a loss. We held the property over a year. Can we deduct the full loss in 2016?

Submitted: 8 months ago.Category: Tax
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9/18/2017
Tax Professional: emc011075, Tax adviser replied 8 months ago
emc011075
emc011075, Tax adviser
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Satisfied Customers: 3,697
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HI. My name is ***** ***** I will be happy to help you.

Not if it was an investment property. You can only deduct full losses from selling a rental property or business property. Losses from sale of investment property is limited to 3K.

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Tax Professional: emc011075, Tax adviser replied 8 months ago

Any questions?

Did you flip the house? If yes, do you plan to do more flipping?

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Tax Professional: emc011075, Tax adviser replied 8 months ago

In that case it is not an investment property, it is your "inventory". You are not investing, you are reselling. It is the same thing as buying old furniture from a garage sale, restore it and sell it. You do the same thing but with house. You can treat the activity as business, report it on a partnership return and claim loses.

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