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I bought my primary residence in 2015 for $275,000 but sold it at a loss for $272,000 in 2017. Can I deduct that loss on my 2017 return? If so where?

 
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Coleen3
Intuit Alumni

I bought my primary residence in 2015 for $275,000 but sold it at a loss for $272,000 in 2017. Can I deduct that loss on my 2017 return? If so where?

Unfortunately, no. According to the IRS, you can't take a loss on personal use property.

Topic Number 409 - Capital Gains and Losses

Almost everything you own and use for personal or investment purposes is a capital asset. Examples include a home, personal-use items like household furnishings, and stocks or bonds held as investments. When you sell a capital asset, the difference between the adjusted basis in the asset and the amount you realized from the sale is a capital gain or a capital loss. Generally, an asset's basis is its cost to the owner, but if you received the asset as a gift or inheritance, refer to Topic No. 703 for information about your basis. For information on calculating adjusted basis, refer to Publication 551, Basis of Assets. You have a capital gain if you sell the asset for more than your adjusted basis. You have a capital loss if you sell the asset for less than your adjusted basis. Losses from the sale of personal-use property, such as your home or car, aren't tax deductible.

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2 Replies
Coleen3
Intuit Alumni

I bought my primary residence in 2015 for $275,000 but sold it at a loss for $272,000 in 2017. Can I deduct that loss on my 2017 return? If so where?

Unfortunately, no. According to the IRS, you can't take a loss on personal use property.

Topic Number 409 - Capital Gains and Losses

Almost everything you own and use for personal or investment purposes is a capital asset. Examples include a home, personal-use items like household furnishings, and stocks or bonds held as investments. When you sell a capital asset, the difference between the adjusted basis in the asset and the amount you realized from the sale is a capital gain or a capital loss. Generally, an asset's basis is its cost to the owner, but if you received the asset as a gift or inheritance, refer to Topic No. 703 for information about your basis. For information on calculating adjusted basis, refer to Publication 551, Basis of Assets. You have a capital gain if you sell the asset for more than your adjusted basis. You have a capital loss if you sell the asset for less than your adjusted basis. Losses from the sale of personal-use property, such as your home or car, aren't tax deductible.

Carl
Level 15

I bought my primary residence in 2015 for $275,000 but sold it at a loss for $272,000 in 2017. Can I deduct that loss on my 2017 return? If so where?

No. Losses for the sale of personal property are not deductible.

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