Lost 20K on the sale of the boat, spent 10K fixing it up. Since the IRS tends to consider boats a house, can I take a 30K capital loss.
If I have no Capital Gains to net it against, can I amortize the loss forward like stock market losses? and then use it against a capital gain some year in the future?
2006-11-03 09:50:36 · 7 answers · asked by ebiz1@sbcglobal.net 2 in Business & Finance ➔ Taxes ➔ United States
According to page 97 of IRS publication 17:
"Personal Use Property - Property held for personal use only, rather than for investment, is a capital asset, and you must report a gain from its sale as a capital gain (on Schedule D). However, you can NOT deduct a loss from selling a personal use property."
There are four types of property, personal-use (your boat, car, home, clothes, furniture), investment-use, business-use, and inventory. You mentioned being able to write-off the loss on your home. If you see anywhere where it says that, please let me know.
So, if you sold your boat at a profit, Uncle Sam wants a cut. If you sell it at a loss, too bad. Not fair, is it?
2006-11-03 12:40:47 · answer #1 · answered by TaxMan 5 · 1⤊ 2⤋
Taking a loss on personal property is not allowed. The IRS does not allow a deduction for paying too much, getting in too deep, and selling at a loss after you decide to stop the bleeding.
Take it from me, a dreamer with lots of losing projects
2006-11-07 05:07:33 · answer #2 · answered by shfincter S 2 · 0⤊ 0⤋
The cash invested in MF's, IRA's and shares are not able to be regarded as capital loss when you consider that the marketplace might cross up and you continue to keep the stocks. That approach at any place you cross and dossier capital loss will provide you the equal rationalization. Wait, keep and pray!
2016-09-01 06:45:38 · answer #3 · answered by buch 4 · 0⤊ 0⤋
According to the IRS FAQ linked below, "The loss on the sale of a personal residence is a nondeductible personal loss." I'm not sure if the boat would be treated the same as a house. It seams to me that it would be a 'nondeductible personal loss'.
2006-11-03 10:02:37 · answer #4 · answered by STEVEN F 7 · 1⤊ 0⤋
Losses on personal items are not allowable. It follows that you cannot carry it forward. If it was a business asset there will be some measure of tax releif but, as the previous poster advised, you should contact a CPA.
2006-11-03 09:58:08 · answer #5 · answered by skip 6 · 1⤊ 0⤋
No, a boat is a personal asset and you can't deduct a loss. However, if it is a business asset you could deduct the loss.
2006-11-03 10:11:56 · answer #6 · answered by waggy_33 6 · 2⤊ 0⤋
No, the loss can't be deducted. The answer would be the same if it was your primary residence.
2006-11-03 11:14:33 · answer #7 · answered by Judy 7 · 2⤊ 0⤋