We sold a piece of land in Florida at a loss - can we deduct the loss

[DS30]

Yes, but the amount of deductible loss may be limited.

If you owned this land as an investment, you are selling a capital asset so this loss is considered a capital loss, You will first be able to offset any capital gains against this capital loss.  It you have no capital gains, you are allowed to deduct up to $3,000 (or $1,500 if you are married filing separately) of capital losses against ordinary income in any given tax year. If there is any remaining capital loss amount, you will be able to carry this loss over to next year and offset it first against capital gains, then again up to $3,000 of ordinary income.

Please refer to this link for more information about capital gains and losses:

https://www.irs.gov/uac/Ten-Important-Facts-About-Capital-Gains-and-Losses

To enter this transaction in TurboTax, log into your tax return and type "investment income (gains and losses)" in the search bar then select "jump to investment income (gains and losses)". TurboTax will guide you in entering this information (see step 6 below)

Alternatively, To enter this transaction in TurboTax Online or Desktop, please follow these steps:

1. Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
2. Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)
3. Next click on “I’ll choose what I work on”
4. Scroll down the screen until to come to the section “Investment Income”
5. Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already worked on this section) (see Screenshot #1)
6. The first screen will ask if you sold any investments during the current tax year (This includes any sale of real property held as an investment property so answer “yes” to this question)
7. Since you did not receive a 1099-B, answer “no” to the 1099-B question
8. On the next screen you will enter the sales information as follows
1. Description – usually the address of the property sold
2. Date Sold – Date you sold the property
3. Date Acquired – Date you acquired the property
4. Sales Proceeds – Total amount received for the property
5. Cost Basis – cost plus any capital improvements
6. Adjustment Amount – leave this box blank (see attached screenshot #2)