Loss on apartment sale. Is it tax deductible?

Started by sgola1

over 16 years ago

Posts: 1

Member since: Mar 2008

Discussion about

I know the rules on exempting capital gains on the sale of your primary residence up to a certain level of profit. But what if you outright lose money on the sale of your home? Is that deductible on your tax return in any way? Someone told me that it's possible only if you're using it to offset other capital GAINS. But let's be honest, who made money in stocks last year?!! Seems kind of unfair that you can deduct the loss as long as your making money in stocks; but if ALL your assets are losing value that you cannot deduct. Is there any other way to deduct the loss? Anyone know?

Response by MatWith1T

over 16 years ago

Posts: 66

Member since: Mar 2009

I would consult someone more informed than I am, but I believe you can deduct a maximum of $3,000 as capital loss, and any remaining loss can be carried over to future years to offset future gains (or as another $3,000 loss and carrying over once more).

At least that's how it goes for other equity classes.

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Response by UWSer

over 16 years ago

Posts: 158

Member since: Feb 2009

Valid point. I don't this our brilliant congress really thought this through. Everyone assumed you could never lose on real estate. I doubt they will change it as congress is hurting for cash. While we are still doing very fine, our HHI dropped dramatically. Oh the tax revenues lost.

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Response by MatWith1T

over 16 years ago

Posts: 66

Member since: Mar 2009

http://www.irs.gov/taxtopics/tc409.html

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