I sold my land in SC August 19, 2016 for $32,000.00 and have been paying taxes for the land valued at $75,000. I paid $72,000 over 10 years ago is this a loss?

[dlpgator]

What can I deduct

[DanielV01 · Accepted solution]

Yes, this is a loss.  As you state in your question, you paid 72,000 for the land and sold it for 32,000 which is a 40,000 loss.  The question is, however, if you can claim the loss on your taxes.  This depends on whether the land was personal use property or investment property.  If it was personal use, then you cannot claim the loss.  (If you buy a home that you live in and lose money when you re-sell, you cannot claim the loss).  If it was investment property, which you bought for the specific purpose of making money, you can claim the loss, but not all at once.

The loss would be reported on Schedule D, and first applied to any capital (investment) gains you may have had.  With what is left over, you may then take a 3,000 (or 1,500, if Married Filing Separate) capital loss on your return.  Any amount left over will carry forward to future years until you can use the remaining amount.  Here is an FAQ with more information:  https://ttlc.intuit.com/replies/5209280