topic Sale of investment property in Get your taxes done using TurboTax

Sale of investment property

rcurry5 — Wed, 24 Jul 2019 00:53:15 GMT

How do I claim a loss on a personal investment property?

BACKGROUND: We purchased a building lot as an investment in 2005 for $65,000 cash. It was located in a recently opened real estate development (Grand Harbor in Greenwood, South Carolina.) Our plan was to build a “spec house” on the lot for sell. In addition to the purchase price, we were contractually required to pay monthly HOP dues and other fees.

As you know the economy took a major downturn and the real estate/housing market crashed. As time went on, the fees and dues increased and there were no offers on the lot. Finally after almost 12 years of continuously listing the property we got an offer and unloaded it. It sold for $9,000. After paying settlement charges, we cleared $3,802.58.

When the smoke cleared we had invested ($65,000 purchase price + 12 X $3,250 a year dues and fees) = $39,000 = $104,000 + $10,000.00 “required purchase of “Club Membership” =$114,000 minus $3,803.58 cleared at settlement . We ended up with a $110,197.42 loss.

How and where do we report all of this on our 2018 Taxes? We have the “Premier” version of Turbotax.

Re: Sale of investment property

lasbanas1 — Wed, 24 Jul 2019 01:31:16 GMT

reported in the investment area of Turbotax like you would report a sale of stock. If you didn't elect to capitalize the dues and fees and taxes they are now lost and you can't use them to increase basis.

Re: Sale of investment property

VolvoGirl — Wed, 24 Jul 2019 01:37:05 GMT

For Land or Investment house it goes under Investments (like a stock sale). It would be "Other".

Federal Taxes Tab

Wages & Income

Then scroll down to Investment Income,

Then Stocks, Mutual Funds, Bonds, Other - click Start or Update

First pick...I'll type it in myself. Then there is a screen which asks what financial institution. Pick the second one from the drop down list for No Financial Institution.