I bought the house, made improvements, and sold it under 2 years - but I sold it for less than what I paid for it because of the current market. Here is what I understand from the IRS:
1. If home is sold under 2 years and profit is made, then you must claim profit whether you lived in it or not.
2. If home is sold under 2 years and lose money, then you can only claim a loss if you did not live in the house.
It seems like a one-way street with the IRS. Is there anyway I can claim a loss on my taxes? How can the IRS prove I really lived in the home and not in my friends or parents home? There has to be some way around this, because I took a pretty hard hit financially with this property.
Thanks.
2007-01-17
02:26:29
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3 answers
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asked by
Anonymous