Unfortunately, the loss of the sale of a personal home is never deductible.
Topic
Number 409 - Capital Gains and Losses
Almost
everything you own and use for personal or investment purposes is a capital
asset. Examples include a home, personal-use items like household furnishings,
and stocks or bonds held as investments. When you sell a capital asset, the
difference between the adjusted basis in the asset and the amount you realized
from the sale is a capital gain or a capital loss. Generally, an asset's basis
is its cost to the owner, but if you received the asset as a gift or
inheritance, refer to Topic No. 703 for information about your basis. For information on
calculating adjusted basis, refer to Publication
551, Basis of Assets. You have a capital gain if you sell
the asset for more than your adjusted basis. You have a capital loss if you
sell the asset for less than your adjusted basis. Losses from the sale of
personal-use property, such as your home or car, aren't tax deductible.
