topic Claim capital loss for sale of property in Investors & landlords

Claim capital loss for sale of property

taxedout1234 — Wed, 11 Feb 2026 10:45:31 GMT

[Removed]

Re: Claim capital loss for sale of property

Anonymous_ — Fri, 20 Dec 2024 02:43:44 GMT

Re: Claim capital loss for sale of property

Mike9241 — Mon, 14 Oct 2024 16:31:01 GMT

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.

Re: Claim capital loss for sale of property

Anonymous_ — Fri, 20 Dec 2024 02:45:10 GMT

Re: Claim capital loss for sale of property

taxedout1234 — Mon, 14 Oct 2024 16:49:06 GMT

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

Re: Claim capital loss for sale of property

Anonymous_ — Fri, 20 Dec 2024 02:45:20 GMT