Tax Deduction on Investment Property Sale Loss

[sehphing]

Hi,

I have sold property which I have considered it as investment property, as I have never lived in it. 

In year 2020, It was never rented out as it was put on sale. It was later sold in Oct 2020, and generate a loss.

Can I still deduct the sale loss given it is not rented out?

[DavidD66]

If the property was an investment, you can deduct the loss.  If the property was personal use, such as a second home, or you let a family member live there, then it is personal property and you cannot take the loss.

[whirler]

Further question: I purchased land in 2002 and sold it, at a loss in 2020. What do I need to submit to claim this loss?

[gloriah5200]

Yes, if this land that was sold was just plain land and was never used for farming or income-producing or as business property, you would report the sale on Form 8949 carrying to Schedule D using the correct adjusted basis and sellng price and if it was just unused land, then it would end up showing on Sch D as a capital gain or loss.