Bought house at $268K, will sell for $250K, never lived in it -- can I deduct this loss from my tax return??
2007-07-08 09:50:49 · 5 answers · asked by Ted L 1 in Business & Finance ➔ Renting & Real Estate
Nope
2007-07-08 10:00:23 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
The world doesn't owe you everlasting upward profit. The nature of an investment is that it could go up or down. In my area the speculators got burned bad on condos and now they are flooding the market. I hope they don't get a tax break because it was their greed that drove up prices for the rest of us normal folks just looking to live in a place as a primary residence.
2007-07-08 10:16:16 · answer #2 · answered by Anonymous · 2⤊ 0⤋
I am not sure, but I think that you can deduct losses like this from a similar business - for example if you buy and sell a lot of houses, you might be able to deduct it from a house that you made money on.
But check it out to be sure.
2007-07-08 10:09:40 · answer #3 · answered by rscanner 6 · 0⤊ 1⤋
Sounds reasonable, if you had had those numbers in reverse they would have charged you ordinary income tax since you didnt hold it for a year. Here are the links you need to go to before you talk to your tax preparer.
IRS: Selling your Home Publication: http://www.irs.gov/publications/p523/index.html
Site #2 http://www.irs.gov/publications/p523/ar02.html
IRS: Real & Personal Property Sales: http://www.ustreas.gov/auctions/irs/
IRS Sale of your home a pamphlet
http://www.irs.gov/taxtopics/tc701.html
There are more pamphlets on the IRS site you can look at
IRS: http://www.irs.gov/
Best of luck on your research
2007-07-08 10:04:37 · answer #4 · answered by newmexicorealestateforms 6 · 0⤊ 1⤋
You should have a tax advisor.
2007-07-08 10:08:05 · answer #5 · answered by Anonymous · 0⤊ 1⤋