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mbonfitto
New Member

I have a loss on the sale of an inherited home. When I put in the information, it tells me can't take personal loss???? What am i doing wrong?

 
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1 Reply
DDollar
Expert Alumni

I have a loss on the sale of an inherited home. When I put in the information, it tells me can't take personal loss???? What am i doing wrong?

You're not doing anything wrong.  An inherited house is "personal property", unless and until you convert it to a rental property or a business purpose.  The rules for personal property, whether it be a house, a car, furniture, etc., is that if you sell it for a gain, you must pay tax, but if you sell it for a loss you cannot deduct the loss.  I know, it doesn't sound fair!  But that's the tax code.

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