My husband and I bought a house in August 2016 and fixed it up and sold it in March of 2017. We made a profit and paid capital gains tax on it. The buyers had issues in 2018 with water in the basement and threatened to sue us for repairs. We went to mediation and settled with them giving them money in 2019 for some of the repairs and giving us a loss on the property. I was told that this is deductable (the money we paid to them) as a long term capital loss but I'm unsure where to record this inTurbotax Home and Business and how to record it. My husband is self-employed and is it just recorded as money refunded to a customer?
