Profile picture for Unicornz0

Real Estate Tax Question

I owned a 2 family (2 family flat) residence for over 30 years. For over 20 years, I lived in 1 unit & claimed a 40% homestead exemption.
Last year, I moved, & both units became investment property in December 2012.

In October 2013 I sold this property for $8.500.00., a loss of $17,900.00.
Since this was investment property when sold, can I legally claim a loss on my IRS 1040 for 2013?

Thanks in advance,
Uni
  • December 18 2013 - Detroit
  • 0Yes

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Answers (3)

This question is not possible to answer here because we do not know your finances and how you have treated the property over the years.  Depending on how you classify yourself and your property determines whether you can take a loss, whether you can take the loss all at once or whether you must spread the loss over several years. In addition one method may be more beneficial to you than another.  You need to sit down with a skilled tax professional and decide what is best for you.  The few hundred you pay for advice may save you many hundreds in taxes.
  • December 18 2013
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Profile picture for Outer Banks N C
You can always claim anything you want, the question is if audited will you be ok or get fined. As Lawrie said, you need to ask a tax adviser or CPA since we sell real estate and don't do taxes.
  • December 18 2013
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Uni,

You would be best to check with a CPA.

Best of luck
  • December 18 2013
  • 0Yes

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