What are the current tax implications of selling a home for a loss?

Profile picture for Beadrunner
We bought our home for $251,000 in 2006 and have $36,000 equity in it.  We are probably going to have to sell for $200,000 and take a loss.  Can we deduct the loss on our taxes? What other options are there to protect our cash as much as possible?
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February 03 2009 - Crystal Lake
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Answers (2)

Profile picture for wetdawgs
Unfortunately the loss is not tax deductible.   
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February 03 2009
Profile picture for Guy Ghanem
My advice is to contact your CPA. He will be the one to give you the most accurate information.

From looking at irs.gov, it seems you cannot deduct a loss on your main residence:
http://www.irs.gov/businesses/small/industries/article/0,,id=98921,00.html

You can also find more useful information here:
http://www.irs.gov/publications/p523/index.html

Hope this helps.
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February 03 2009
 

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Profile picture for wetdawgs
QuestionWhat are the current tax implications of selling a home for a loss?
  • Latest answer by wetdawgs
  • February 03 2009
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