It was my understanding that sales of real estate personal property that result in a loss are considered capital losses and treated like security capital gains/losses. In particular, a real estate long term capital loss can be used to offset other long term capital gains. If the net loss is in excess of $3000, it can be carried over to subsequent years.
Is the above incorrect?
If it is correct, my main question is how to report this loss so that it is properly carried over (e.g., in Schedule D).
Also, because the proceeds were transferred in 2019, should the loss be calculated with the USD amount received in 2019 and reported in 2018 (when the sale occurred)?
Finally, should the cost of the estimate of the property be included in the loss amount and reported in 2018 even if the estimate was paid in 2019?
