Form 1041 trust property sale NOL

Forum|Forum|1 year ago
April 1, 2025
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I read in a 2019 post that the loss from the sale of personal use property (e.g., the home was being used as a residence by a beneficiary), is not deductible and cannot be carried forward.

Just wanted to make sure that was correct. So no carry back or carry forward?

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BrittanyS

According to the IRS, "A loss on the sale or exchange of personal use property, including a capital loss on the sale of your home used by you as your personal residence at the time of sale, or loss attributable to the sale of part of your home that is used for personal purposes, isn't deductible. The only deductible losses associated with property (or a portion of property) are losses on property used in a trade or business, losses resulting from a transaction entered into for profit (for example, a loss on the sale of stock), and certain casualty losses. Until 2025, the only deductible casualty losses are those resulting from federally declared disasters."

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