topic Tax Deduction on Investment Property Sale Loss in Deductions & credits

Tax Deduction on Investment Property Sale Loss

sehphing — Fri, 12 Mar 2021 02:52:18 GMT

Hi,

I have sold property which I have considered it as investment property, as I have never lived in it.

In year 2020, It was never rented out as it was put on sale. It was later sold in Oct 2020, and generate a loss.

Can I still deduct the sale loss given it is not rented out?

Re: Tax Deduction on Investment Property Sale Loss

DavidD66 — Fri, 12 Mar 2021 03:13:31 GMT

If the property was an investment, you can deduct the loss. If the property was personal use, such as a second home, or you let a family member live there, then it is personal property and you cannot take the loss.

Re: Tax Deduction on Investment Property Sale Loss

whirler — Thu, 08 Apr 2021 00:31:05 GMT

Further question: I purchased land in 2002 and sold it, at a loss in 2020. What do I need to submit to claim this loss?

Re: Tax Deduction on Investment Property Sale Loss

gloriah5200 — Thu, 08 Apr 2021 02:05:11 GMT

Yes, if this land that was sold was just plain land and was never used for farming or income-producing or as business property, you would report the sale on Form 8949 carrying to Schedule D using the correct adjusted basis and sellng price and if it was just unused land, then it would end up showing on Sch D as a capital gain or loss.