If the property was held for investment, in other words there was minimal personal use of the property, the sale would be treated as a capital loss. As such, it would be combined with other capital gains or losses you might have, and if it results in a net loss, it is subject to a maximum $3,000 deduction per year.
If you used the property for personal use, as a vacation home for instance, the loss would not be deductible.
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