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Returning Member
posted May 31, 2019 5:58:55 PM

Can I take the sale of land as a loss if I sold it for less than I bought it?

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1 Best answer
Level 15
May 31, 2019 5:59:04 PM

So it was never developed, i.e., no bui;dings were ever in it?  Was it ever used for, say, farming, as a parking lot, etc?

Assuming you purchased this land in anticipation of a price increase, that is, as an investment, then the sale of the land at a loss would result in a capital loss. Capital losses first get applied to any capital gains.  If there's "left over" capital loss then $1,500/$3,000 (depending on filing status) of that loss gets applied to other income.  Any remaining loss is carried forward as a capital loss to be applied in subsequent years.

4 Replies
Level 9
May 31, 2019 5:58:56 PM

If you used the land for personal use, no.
If it was never used for personal use (only investment purposes), yes.

New Member
May 31, 2019 5:58:58 PM

where do I report the sale of vacant land in turbo tax

Level 9
May 31, 2019 5:59:04 PM

In the same section as Stocks, Bonds, Mutual Funds, etc.

Level 15
May 31, 2019 5:59:04 PM

So it was never developed, i.e., no bui;dings were ever in it?  Was it ever used for, say, farming, as a parking lot, etc?

Assuming you purchased this land in anticipation of a price increase, that is, as an investment, then the sale of the land at a loss would result in a capital loss. Capital losses first get applied to any capital gains.  If there's "left over" capital loss then $1,500/$3,000 (depending on filing status) of that loss gets applied to other income.  Any remaining loss is carried forward as a capital loss to be applied in subsequent years.