Purchased a lot for $30,000 in 2004 and sold it for $10,000 in 2017. Can we claim loss?

[kcam1959]

Intended to build on this residential lot but couldn't.

[Hal_Al · Accepted solution]

Yes. The rule is you may not deduct a loss on personal use property (e.g. vacation home). Even though you intended to build on the property; the fact that you didn't means you can treat it as investment property, not personal use property.

A capital loss may be deducted against other capital gains you have, on this year's return. But, you may only deduct $3000 against ordinary income. Any excess is carried forward to next year. 

[TaxGuyBill]

I've seen Tax Court cases that denied the deductible loss because the "intent" was personal.  I'm sure it is a facts-and-circumstances type of thing though.