topic Purchased a primary home in 2002 and vacated the home in 2014. Didnt convert to rental, held for appreciation without attempts to sell. Is a capital loss deductible? in Investors & landlords

Purchased a primary home in 2002 and vacated the home in 2014. Didnt convert to rental, held for appreciation without attempts to sell. Is a capital loss deductible?

jim13 — Tue, 13 Aug 2019 04:43:37 GMT

Re: Purchased a primary home in 2002 and vacated the home in 2014. Didnt convert to rental, held for appreciation without attempts to sell. Is a capital loss deductible?

Anonymous_ — Tue, 13 Aug 2019 05:07:20 GMT

If you intended for the property to be income producing (either current income through rental or through appreciation), then a loss can be deducted.

However, you will have to use the lesser of your original cost basis or the fair market value on the date of conversion, which may make this proposition less attractive.

Re: Purchased a primary home in 2002 and vacated the home in 2014. Didnt convert to rental, held for appreciation without attempts to sell. Is a capital loss deductible?

Anonymous — Tue, 13 Aug 2019 06:42:18 GMT

your basis would be lesser of 2002 purchase price + cost of improvements through date vacated or FMV on date vacated plus cost of improvements after that date