Do I need to report on either federal or state the out-of-state sale of a second home that was not a rental property, if it sold at a loss?

[Anonymous]

did you get a 1099-S?   if ye,s report it becuase the IRS and state have no way of knowing you had a loss but they do know  you got $X in proceeds and can assume $0 cost. 

[Carl]

On the federal taxes, if the property was sold for less than you paid for it and it was never used as a rental and you "NEVER" claimed any business use of "any" part (such as a home office) for any type of business, then generally the answer is no. However, if you receive a 1099-S for the sale then you have "no choice" and are required to report it, even if it is a loss.

On the state taxes, it depends on your state you live in, as well as the state the property is physically located in. One, the other or both states may or may not require you to report it.

[mcdermjr]

I got a HUD form that indicates it is a sub or alternate for the 1099S. What you say makes sense. Without filing they have no way of knowing it was a loss.  Thanks,

[Carl]

One thing I forgot to mention is that if you received a 1099-S or any kind of letter that states it's "in lieu of" a 1099-S, then you are required to report it regardless of having a gain or loss.