sale of a home for a loss

[1stmoon]

I purchased a home in 2019 and while attempting to sell my current home.  things did not work out as planned and I was forced to sell the recently purchased home at a loss.  can I deduct the loss and the expenses incurred to sell the house?

[RayW7]

I am sorry but losses on personal residence sales are not deductible unless you have converted the property to a rental.

You can't deduct a loss on the sale of your main home or a vacation home. This is considered a personal loss and isn't deductible for tax purposes.

On the other hand, if you used the home as a rental property or it was an investment property, then you may be able to deduct the loss. TurboTax will help you figure out if you qualify for a deduction.

-follow these links for additional information-

Tax Law for Selling Real Estate - TurboTax Tax Tips & Videos

Selling Rental Real Estate at a Loss - TurboTax Tax Tips ...

[Bsch4477]

No you can’t deduct a loss on the sale of a personal home.