Claim capital loss for sale of property

[taxedout1234]

[Removed]

[Mike9241]

if you're going to report the sale as a rental property, since it is now business property the loss is ordinary not capital.   the sales price and cost flow to form 4797 and from there to schedule 1 line 4 - not to schedule D

as a personal residence the loss is not deductible.

on schedule E you have to report days rented at fair value which if you never rent it would be 0

whether this reporting would create a red flag in the IRS computers is unknown. 

[taxedout1234]

Thank you for your answers. Sounds like it's best to get a CPA for this kind of scenario?