Vacant land sold at a loss

[gmajewsk99]

We purchased a lot in Homosassa FL in 2004 for $120,000 and sold it in 2023 for $35,000. I received a 1099S from the title company.

When I enter these amounts and dates in TT as per instructed using the investment sales Q&A, the calculated loss in $0.  Am I doing this properly and if not what should I do differently please?

Many Thanks!

GJM

[DoninGA]

The loss on the sale of real property used only for personal purposes is not entered on a tax return.

[gmajewsk99]

How about an investment property sold at a loss?  Could that be considered a capital loss?

Thank you,

Glo

[DoninGA]

---

@gmajewsk99 wrote:

How about an investment property sold at a loss?  Could that be considered a capital loss?

Thank you,

Glo

---

Yes.

[zomboo]

From my experience - Yes. I purchased a lot and sat on it for several years that I treated as an investment. It is 'vacant land held for speculation'. If I remember correctly, during the years I owned it I claimed expenses such as city imposed improvements as investment expenses. Interest on the loans to purchase the property and make improvements qualifies as investment interest which can be used to offset income taxes on taxable interest from any source.