Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Apr 7, 2025 8:51:59 AM

I bought a fixer upper to live in with cash. I sold at a substantial loss after realizing excessive repair cost. Do I need to report purchase to IRS?

Must I declare home purchase to IRS if I resold at a loss? House was to be primary residence.

0 1 846
1 Replies
Expert Alumni
Apr 7, 2025 8:54:40 AM

Yes.  If you sold a house, even if you sold it at a loss, it is best to report it on your return.  You need the "paper trail" and to tell them that it was at a loss.

 

To enter the Sale of a Home select the following:

  1. Federal
  2. Income
  3. Sale of Home under Less Common Income