Recently bought a house in California, but am relocating for a job to another state. Because the real estate market is down, I will be taking a loss on my house. Is this tax deductible?
2007-09-06 14:02:49 · 7 answers · asked by Carissa B 2 in Business & Finance ➔ Taxes ➔ United States
If it was your personal residence, I'm sorry to say that no you can't deduct a loss, this would be a personal loss, which is non-deductible. Now, if you had sold the house at a gain, you would have to pay taxes on it.
More than likely though, you can deduct on this years 1040 the costs of moving to the other state.
2007-09-08 17:59:26 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I will say no. The Government not care when we lose, only when we make. But, you could take to the IRS. I get a link.
Try here;
http://www.irs.gov/individuals/article/0,,id=121557,00.html
There is a list and you need to scroll and read. Some I list for you.
Job Loss or Starting a new Career or Job
Moving? Publication 523 (Selling your Home)
Many of these are PDF Files, you need Abode Reader. Maybe you can find something. Sorry it take so long, Yahoo kept giving me an Error. They always Updating something.
2007-09-06 14:11:07 · answer #2 · answered by Snaglefritz 7 · 0⤊ 0⤋
No, losses on the sale of a personal residence are never deductible.
If the property was purchased for investment purposes then the loss may be treated as a capital loss.
2007-09-06 16:54:21 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Rob is truly superb. besides the fact that, purely considering you may no longer deduct those actual factors taxes does not propose you lose out thoroughly. you may upload the actual factors taxes you paid on behalf of the seller to the "foundation" of your factors, which generally ability the linked fee of your house is that lots better than what you paid for it. This turns into important once you sell the domicile because of the fact the greater your foundation interior the valuables, the less your benefit, as a effect the less your taxes on that benefit would be, if that applies to you. If that's a private domicile which you lived in for 2 of 5 years previous to the sale, you do no longer ought to pay tax on the 1st $250,000 benefit. wish that enables. P.S. After rereading your question, enable me upload that if the seller truly paid the actual factors taxes beforehand for a volume of time once you owned the domicile and you purely reimbursed him for that then, definite, you may deduct that as actual factors taxes paid on schedule A.
2016-10-10 02:35:13 · answer #4 · answered by severyn 4 · 0⤊ 0⤋
No, sorry, a loss on a personal residence isn't deductible.
2007-09-06 14:51:55 · answer #5 · answered by Judy 7 · 1⤊ 0⤋
Really need to check the IRS rules. It sure seems like this should fall under the capital gains/loss area. If we make a profit, we have to pay capital gains. It should work the same for the loss.
All those relocating expenses are deductible. You might want to check that on the IRS site to make sure you keep receipts and cover all the bases.
2007-09-06 14:17:13 · answer #6 · answered by bdancer222 7 · 1⤊ 4⤋
No, not if it was your personal residence.
2007-09-06 14:54:25 · answer #7 · answered by Wayne Z 7 · 1⤊ 3⤋