@iambk wrote:
Could you please clarify "If that results in a loss (considering the expenses of sale), you are not allowed to claim the capital loss as a deduction, because it is personal use property (a relative lives in it)."?
There is actually not much to clarify. You stated that a capital loss is not allowed as a deduction, since the property is held for personal use, and that is the rule.
See https://www.irs.gov/taxtopics/tc409
Losses from the sale of personal-use property, such as your home or car, aren't tax deductible.
In order to deduct a loss from the sale, you would have to hold the property for business or investment purposes.
