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Returning Member

Can I claim this real estate loss?

Bought and lived in a home Aug/2007 to 6/2011. Sold option to buy 11/2011 through 9/2016.  Evicted buyer. Repossessed home. Sold at a loss in 9/2017. Can I claim loss, and how? Received 1099S.  Claimed interest received in prior years.  Thank you.

1 Reply
New Member

Can I claim this real estate loss?

It depends - You would only be able to claim a loss if you consider this an investment house.

So since you did not use the house for any personal use after the evicted buyer moved in in 11/2011, you can claim that this was an investment house and you should be able to claim the loss as a loss on an investment property.

To enter the sale of a capital asset in TurboTax, log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return") type "investment sales" in the search bar then select "jump to investment sales". TurboTax will guide you in entering this information.

  1. Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already worked on this section)
  2. The first screen will ask if you sold any investments during the current tax year (This includes any asset held as an investment property so answer “yes” to this question)
  3. Since you did not receive a 1099-B, answer “no” to the 1099-B question
  4. Choose type of investment you sold - select everything else
  5. Some basic information:
    1. Description –  Usually the address of the property sold
    2. Sales Proceeds – Your net proceeds from the sale (usually reported on 1099-S)
    3. Date Sold – Date you sold the property (on 1099-S)
  6. Tell us how you acquired the property - purchased
  7. Enter the your cost basis- cost plus capital improvements less any depreciation deducted or allowable as a deduction less any casualty losses take on the property. (Just keep a record of how you figured your cost basis for future reference.)
  8. Date acquired - (Just remember that the date acquired should be more than a year before the date sold in order for the sale to get long term capital gains treatment and the lower capital gains rate)
  9. If you had a loss, on the question of "Did you use this property for business or investment?" If the property was not used for any personal use, you will answer that this was for investment. Otherwise, you will not be able to deduct the capital loss of a personal use capital asset.

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