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Sale of inherited house for investment purposes, Cant get turbo tax to acknowledge the loss

 
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PatriciaV
Employee Tax Expert

Sale of inherited house for investment purposes, Cant get turbo tax to acknowledge the loss

Unfortunately, you cannot deduct the loss on the sale of an inherited property (second home) as the IRS considers this is to be the sale of personal use property.

See IRS Pub 17: Personal Use Property

If you used this property as a Rental, you may report a loss on the sale under Rental Properties. Or you can report this as an Investment Sale ("Everything Else") as a capital loss.

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