Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
jamesfsmithco
Level 2

Can I deduct losses for an inherited property sold at a loss

I inherited a bare lot in 1998.  I paid property taxes on it every year.  Sold it in 2020 at a loss.  Can I claim the loss between the 1998 basis and sale price plus the property taxes paid?  If so, how do I do this in Quicken Premier?

 

Thanks for your help!

 

Jim

2 Best answer

Accepted Solutions
tagteam
Level 15

Can I deduct losses for an inherited property sold at a loss

Yes, you can deduct a capital loss on the sale if the selling price was less than your inherited basis.

 

Enter the transaction in the Investment Income section, the same as if you had sold a stock or mutual fund.

View solution in original post

tagteam
Level 15

Can I deduct losses for an inherited property sold at a loss

You should have been deducting the taxes paid each year in the tax year in which you paid the property taxes. 

 

If you made an election to capitalize the taxes (rather than deducting them), then you would be able to add the taxes to your basis. However, apparently you neither deducted the taxes nor elected to capitalize them and it is too late now to do either, unfortunately.

View solution in original post

3 Replies
tagteam
Level 15

Can I deduct losses for an inherited property sold at a loss

Yes, you can deduct a capital loss on the sale if the selling price was less than your inherited basis.

 

Enter the transaction in the Investment Income section, the same as if you had sold a stock or mutual fund.

View solution in original post

jamesfsmithco
Level 2

Can I deduct losses for an inherited property sold at a loss

Great!  Thanks for the reply.

 

Can I also deduct the property taxes paid over these years?

 

Jim

tagteam
Level 15

Can I deduct losses for an inherited property sold at a loss

You should have been deducting the taxes paid each year in the tax year in which you paid the property taxes. 

 

If you made an election to capitalize the taxes (rather than deducting them), then you would be able to add the taxes to your basis. However, apparently you neither deducted the taxes nor elected to capitalize them and it is too late now to do either, unfortunately.

View solution in original post

Dynamic AdsDynamic Ads
Privacy Settings
v