VincentL
Employee Tax & Finance Expert

Tax law changes

The IRS website has information on what documents are acceptable:

 

https://www.irs.gov/businesses/small-businesses-self-employed/recordkeeping

 

The recognition of loss is dependent upon the nature and character of the loss. Was this investment property or hobby losses?

 

https://www.irs.gov/taxtopics/tc409

 

Selling an investment property at a loss means accepting less than what you initially paid for it. Generally, when a rental or investment property is sold at a loss your losses can be deducted from ordinary income. Again, this is the income most people report on a Form 1040 each year when they file their taxes.

 

Hobby losses are not deductible.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"