If the appraised value of a home that I just sold is more than the selling price can I claim a loss?

[DoninGA · Accepted solution]

How the home is appraised is not relevant when calculating the gains or losses on the sale of a personal residence.

Gain or Loss on the Sale = Sales Price minus Sales Expenses minus the Adjusted Basis of the home (Purchase price plus the cost of improvements prior to the sale)

The loss on the sale of a personal residence is not reported on a tax return, unless you received a Form 1099-S for the sale then it is reported.

If you sold your primary personal residence and you lived in and owned the home for at least two years in the five year period on the date of sale, you do not have to report the sale if your gains are less then the exclusion amounts of $250,000 if filing Single or $500,000 if filing Married Filing Jointly (and both lived in the home for two years).

If you had a gain greater then the exclusion amounts then you would have to report the sale. Also, if you received a Form 1099-S for the sale either with a gain or a loss, the sale has to be reported. You will need the online TurboTax Premier or Self-Employed edition to report the sale if you are using the online editions. Make sure that you indicate that you want the sale of the home reported on your tax return.

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Less Common Income
On Sale of Home (gain or loss), click the start or update button

Or enter sale of home in the Search box located in the upper right of the program screen. Click on Jump to sale of home

[Opus 17]

No.

You can never deduct a loss on the sale of personal property.

If this is an investment property, a loss would mean you sold it for less than your cost basis.  Your cost basis is what you paid for the property.  If you inherited the property, the cost basis is the fair market value on the date the previous owner died, usually determined by an appraisal.  

But the appraisal on the date of the sale means nothing.  It's just a fancy opinion of the value of the property.  Proof of the value of the property is the price a buyer is willing to pay.