Loss on sale of investment property

[GabTax2020]

I purchase a lot in a new development in early 2000's.  Its value plummeted in 2008.  I finally sold it in 2019 for a 50+K loss.  When I try to put it in as a loss, all of the loss is excluded.  Why?

[DianeC958]

It may be the way that you are putting the information into TurboTax.

The loss needs to be reported in the Investment Income Section of TurboTax in Stocks, Mutual Funds, Bonds, Other.

When the program asks if you received a 1099-B for this sale, you answer No.You will see a list of Investments.  Pick Land.  Then put in the information about the sale of the land.  

You should have a long-term Capital Loss where you can take a deduction of $3,000 per year above any Capital Gains and the amount carries forward to offset any Capital Gains, along with deducting $3,000 per year until the total loss is deducted.

Capital Gains and Losses

@GabTax2020

[GabTax2020]

I've done what you stated.  It showed a loss and then excluded all of the loss.  Note:I have no capital gains to offset.

[ThomasM125]

I'm not sure why a capital loss would be denied. Please look on your form 1040 and see if the $3,000 loss is listed on line 6. You can view your form 1040 while working in TurboTax as follows:

1. Find the "Tax Tools" option on your left menu bar and click on it

2. Click on "Tools"

3. Click on "View Tax Summary"

4. On your left menu bar find the "Preview my 1040" option and click on it

[GabTax2020]

Schedule D shows the data for the purchase and sale, but excludes the loss?????

[Hal_Al]

The most likely explanation is you identified the property as personal use (e.g. 2nd home or vacation property). A loss is not allowed.  Delete the sale and start over,

Even though you have a $50K loss, you will only be allowed to deduct $3K on your 2019 return*.  The rest will carry forward.

*The loss will first reduce any capital gains you have. 

[GabTax2020]

Been there done that.  if entered as personal property it does not show a loss.  I entered as investment, then it showed the loss, but then excluded it.