does one have to pay tax if home is sold at a loss?

Question

my home is sold at a loss. i know i can claim up to $3000 of the net capital loss. but do i have to pay tax?? or is it that the rest of the loss will be carried over to future years

Answer 1

Your tax is based upon your capital "gain" if there is one.

http://www.irs.gov/newsroom/article/0,,id=170634,00.html

Answer 2

If this was your personal home you can NOT deduct the capital loss!

Since you sold at a loss, no tax would be due.

Answer 3

To answer your question, yes you still have to pay tax even if you sold your home at a loss.

However, if your home was converted to a rental unit even for a short time, then you would be able to claim a loss on the sale, assuming that's the way the numbers work out. I have done this myself. I bought a second home, then rented out the previous personal home for nine months. Booted out the tenants, and then sold the house. Due to the fact that the cost basis was fair market value upon conversion to rental, and the costs of sale, I was able to deduct a loss of ~$4,500 on my taxes. I honestly didn't do it that way for the tax advantage, but the numbers did work out in my favor - and I didn't complain.

Answer 4

When you sell your personal residence at a loss, you cannot take a loss on your tax return. Just something you have to accept.

Answer 5

You CANNOT claim a capital loss on the sale of your personal residence.

Answer 6

No, you can't claim anything for the loss since it's your personal residence. Any loss isn't deductible, so what you "know" isn't correct.

Answer 7

you do no longer ought to pay capital advantageous factors tax on the completed quantity which you gained. in case you're required to pay capital advantageous factors tax, you pay capital advantageous factors tax purely on the style between the quantity which you gained and your foundation. whether, considering the fact that your foundation (defined under) grow to be greater desirable than you gained, no capital advantageous factors tax is due. whether that's an apartment or enterprise assets, you are able to declare a capital loss. If it grow to be owned purely for inner maximum use, there you're no longer allowed to deduct the loss. "Your foundation in assets you inherit from a decedent is normally between here. The FMV of the valuables on the date of the decedent's demise. The FMV on the exchange valuation date if the non-public representative for the valuables elects to apply exchange valuation. the fee under the specific-use valuation approach for actual assets utilized in farming or a heavily held enterprise if elected for assets tax applications. The decedent's adjusted foundation in land to the quantity of the fee excluded from the decedent's taxable assets as a qualified conservation easement. If a federal assets tax return does not must be filed, your foundation interior the inherited assets is its appraised fee on the date of demise for state inheritance or transmission taxes."

Answer 8

no, the current tax code is based on income and production.

no income, no tax.

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Answer 9

No tax effect.

There is no gain so no tax liability and, assuming this was your personal residence, the loss isn't deductible.