Can I deduct the losses from sale of my home on my taxes?

Question

I bought a home, live in it and renovated it. I lived in it for 15 months, then I bought another home. I put the house up for sale when I moved, but did not sell it until 9 months later. So, the house was my primary residence only about 66% of the time I owned it. I sold the house less than what I paid and invested into it. Can I deduce the losses from my taxes?

ps. I understand the law states I cannot deduce a loss from my primary residence, but what is the deal if it was my primary residence for only part of the time?

Answer 1

The house was not an income producing property. Most of the time you owned it, you lived in it or were trying to sell it. It was not held as an investment. You cannot deduct a loss on the sale of the house.

You can deduct mortgage interest and real estate taxes on both houses for the parts of the year you owned them, assuming the total mortgages were less than $1 million. If the combined mortgages were more than $1 million, your deduction is going to be reduced to the interest on $1 million.

When you sold your first house, if you did not deduct "points" when you bought the house, you can deduct any remaining "points" when you sell. If you took out a mortgage on the second house and paid points, deduct those in the year you bought the second house.

If your move was to a new job, you may be able to deduct the moving expenses from the first house to the second house.

Answer 2

To put it simply, NO. You cannot deduct the loss on the sale of a personal residance. During the time it was sitting unoccupied waiting for a buyer it was nothing more than a second personal residence. Therefore you cannot deduct the loss on your taxes.

If you had purchased it for investment purposes, that would be a different story. However this is not the case in your situation.

Answer 3

possessing resources and living on/contained in the resources don't have any genuine courting. You personal a million/2 the resources and if it offered for a income you may want to income receiving a million/2 the income. are you able to stop declare the living house to the different proprietor before foreclosure? If the living house is offered for far less that the interior most loan quantity you should receive a 1099c from the lender for the interior most loan quantity a lot less the marketing value. you also would attempt a letter to the lender pointing out you do not have any pastime contained in the resources, a divorce decree offered tha living house for your ex-spouse.

Answer 4

As a primary or secondary house, the loss is not deductible.

Answer 5

No, you can't. If it sat vacant for 9 months, that doesn't affect the tax situation.

Answer 6

doubtful - tax to a tax accountant -