Tax Deduction on Investment Property Sale Loss

Forum|Forum|5 years ago
March 12, 2021
1 reply
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Hi,

I have sold property which I have considered it as investment property, as I have never lived in it.

In year 2020, It was never rented out as it was put on sale. It was later sold in Oct 2020, and generate a loss.

Can I still deduct the sale loss given it is not rented out?

D

DavidD66

If the property was an investment, you can deduct the loss. If the property was personal use, such as a second home, or you let a family member live there, then it is personal property and you cannot take the loss.

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W

whirler

Further question: I purchased land in 2002 and sold it, at a loss in 2020. What do I need to submit to claim this loss?

G

gloriah5200

Yes, if this land that was sold was just plain land and was never used for farming or income-producing or as business property, you would report the sale on Form 8949 carrying to Schedule D using the correct adjusted basis and sellng price and if it was just unused land, then it would end up showing on Sch D as a capital gain or loss.