We sold home in KY in 2014, bought home in 2014, sold home in 2016, bought home in KY. Including updates, took loss ? have to file on 2016 taxes.

[DianeW · Accepted solution]

No, a personal loss is not allowed to offset or reduce other income on your tax return.  If the sales price is less than your adjusted cost basis (original purchase price, plus sales and purchase expenses, plus capital improvements) then this would be a personal loss because it was your main home.

You cannot use the balance due on any outstanding loan on the home or other debt for the home to determine your gain or loss.