How do I claim a loss on a personal investment property?
BACKGROUND: We purchased a building lot as an investment in 2005 for $65,000 cash. It was located in a recently opened real estate development (Grand Harbor in Greenwood, South Carolina.) Our plan was to build a “spec house” on the lot for sell. In addition to the purchase price, we were contractually required to pay monthly HOP dues and other fees.
As you know the economy took a major downturn and the real estate/housing market crashed. As time went on, the fees and dues increased and there were no offers on the lot. Finally after almost 12 years of continuously listing the property we got an offer and unloaded it. It sold for $9,000. After paying settlement charges, we cleared $3,802.58.
When the smoke cleared we had invested ($65,000 purchase price + 12 X $3,250 a year dues and fees) = $39,000 = $104,000 + $10,000.00 “required purchase of “Club Membership” =$114,000 minus $3,803.58 cleared at settlement . We ended up with a $110,197.42 loss.
How and where do we report all of this on our 2018 Taxes? We have the “Premier” version of Turbotax.
