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kcam1959
New Member

Purchased a lot for $30,000 in 2004 and sold it for $10,000 in 2017. Can we claim loss?

Intended to build on this residential lot but couldn't.

1 Best answer

Accepted Solutions
Hal_Al
Level 15

Purchased a lot for $30,000 in 2004 and sold it for $10,000 in 2017. Can we claim loss?

Yes. The rule is you may not deduct a loss on personal use property (e.g. vacation home). Even though you intended to build on the property; the fact that you didn't means you can treat it as investment property, not personal use property.

A capital loss may be deducted against other capital gains you have, on this year's return. But, you may only deduct $3000 against ordinary income. Any excess is carried forward to next year. 

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2 Replies
Hal_Al
Level 15

Purchased a lot for $30,000 in 2004 and sold it for $10,000 in 2017. Can we claim loss?

Yes. The rule is you may not deduct a loss on personal use property (e.g. vacation home). Even though you intended to build on the property; the fact that you didn't means you can treat it as investment property, not personal use property.

A capital loss may be deducted against other capital gains you have, on this year's return. But, you may only deduct $3000 against ordinary income. Any excess is carried forward to next year. 

View solution in original post

TaxGuyBill
Level 9

Purchased a lot for $30,000 in 2004 and sold it for $10,000 in 2017. Can we claim loss?

I've seen Tax Court cases that denied the deductible loss because the "intent" was personal.  I'm sure it is a facts-and-circumstances type of thing though.
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