Profile picture for user3102881

Own 2 homes; selling one

I had to move due to a new job 4 years ago. I purchased a new home and put my first home on the market, but it never sold. Now, 4 years later, it is about to sell. I am selling at a $70K loss on the original construction price (I built it). Question: my first house no longer qualifies for living in it "2 of the past 5 years" rule in terms of being a residence. Is it now considered an investment/commercial property? And if it is, can I take the overall loss as a deduction?

jw
  • May 19 2012 - US
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Answers (1)

Profile picture for wetdawgs
Meet with a tax accountant to review the situation.   Has it been a rental for the last four years with deductions for depreciation or empty?

There are limits on the amount of capital loss you can take, but a tax accountant licensed in your state would be best to help you with this.
  • May 19 2012
  • 1Yes

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