On 9/20/2201 we bought a residential lot (privatte party sale) with the intentions of building a new home. We paid $51,000 for the lot. We ran into problems getting our plans completed by December 31 2021 (company took 4 months with very little result) so we could commence with building in spring of 2022.
On January 1, 2022 we stumbled on an existing home that had been on the market for 30 days and the price had just been reduced. We put in an offer on that home at listing price and it was accepted so we decied to sell the lot and not build the home. We closed on that home in mid February, moved in April 2022.
The empty lot was listed with our real estate agent in January and had very little interest in it. The market in our area was just faring well for buildable residential lots with the price of building materials that skyrocketed because if supply chain issue, shortages due to COVID, etc.
In August of 2022 we finally had an offer! Although it was low, we decided to accept the offer of $40,000 and closed on that sale on 9/16/2022 We have taken a loss of $11,000 plus a few expenses such as mowing.
Will be be able to claim capital loss on the $11K we lost on the sale of the lot? We were 4 days short of owning it for a year, if that makes a difference. Thank you!
