say i bought a property for 1.1 mil and sold it for 1 million...with a 100K loss, how much tax deduction is that?
2006-12-12 10:04:02 · 4 answers · asked by jade_lewis13 2 in Business & Finance ➔ Taxes ➔ United States
If you had any other gains in the year, the loss is deductible against those. If there is any of the loss left over, you can set a maximum of $3,000 per year against ordinary income. This assumes yur transactions are at arms length.
2006-12-12 10:14:31 · answer #1 · answered by skip 6 · 1⤊ 0⤋
If the property was investment property, then the loss is a capital loss. It would be used to offset any capital gains you received, and the remaining loss would be deductible up to a maximum of $3,000 a year. The remaining loss after that would be carried over into future years and used to offset capital gains in future years, and generating you a $3,000 capital loss per year. So, if you had no other capital gains this year or in future years, it would take you 34 years to fully deduct it.
2006-12-12 11:03:37 · answer #2 · answered by jseah114 6 · 1⤊ 0⤋
your giving incomplete data, there are different situations/time issues when you sell property, you must use it as investment property to deduct losses there is no loss deduction for personal residence (generally).
and after youve done your homework, rememer that your loss would not be 100k all in one year but it will be only 3k per year until depletion.
you bought a 1mil house, can i be your boyfriend?
2006-12-12 10:13:26 · answer #3 · answered by stucaz 2 · 1⤊ 0⤋
If you can afford to buy and sell Million dollar properties, you should have a CPA on retainer. They should be the person you ask. That said, the first three answers are accurate.
2006-12-12 12:37:16 · answer #4 · answered by STEVEN F 7 · 2⤊ 0⤋