Property sale, not primary residence

[donslayton]

I carried a contract to sale a house i owned in OK.  The party stopped paying.  I had a lawyer draft a document to return the property back to me in lieu of foreclosure.   The property has serious damage.  I sold the property to a family member at a reduced price because of the damage, approx. $25,000 below tax assessor value.  I did not see anything in turbo tax on loss of capital gains.  i only saw sale of a home.  Can i deduct the loss of capital gains and is the sale of home section of turbo tax where i would enter this income? 

[MaryK4 · Accepted solution]

You cannot deduct the loss of capital gains based on the decreased value of the home.  A capital gain or loss is not determined until you actually sell the property. 

You would enter the sales under Investment Income- Sticks, Mutual Funds, Bonds, Other.