Re: Tax Deduction on Investment Property Sale Loss
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sehphing
Returning Member

Tax Deduction on Investment Property Sale Loss

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?

3 Replies
DavidD66
Employee Tax Expert

Tax Deduction on Investment Property Sale Loss

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.

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whirler
New Member

Tax Deduction on Investment Property Sale Loss

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
Expert Alumni

Tax Deduction on Investment Property Sale Loss

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.

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