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July 22, 2023
Question

Selling home under construction at a loss

  • July 22, 2023
  • 1 reply
  • 0 views

We were building a home about 150 miles from us. We ran out of money and cannot complete the home. It was going to be our primary residence. Construction has stopped. We have a primary residence that was to be sold upon completion. The house under construction is now on the market and it will not sell for what we have put into it. We have all receipts. Will we be able to claim a loss for this home?

    1 reply

    DoninGA
    Employee
    July 22, 2023

    Residential real estate that is for personal use only and is sold at loss is not reported on a tax return.

    Critter-3
    July 23, 2023

    It is reported on a tax return since a  1099-s will be issued however the loss is not deductible.