Hal_Al
Level 15

Deductions & credits

If you or any other relative  lived in the house, since you inherited it, you cannot take a deduction for a loss on the sale of a residence, even a second home. Report the sale as the sale of personal use property (2nd home).

 

If the house was "investment property", and sat vacant all this time, you can deduct the loss. Report as the sale of investment property, not a 2nd home