Profile picture for user110052

taking a loss

If I buy a vacation condo for 100000, sell it in a depressed market three yrs from now for 80000, can I write off the loss on my taxes?  I would  be a cash buyer
  • March 22 2012 - Cranston
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Answers (5)

Profile picture for cjcsellshomes
Good Afternoon,

I would strongly advise that you consult a tax specialist for the exact tax ramifications of writing off a real estate loss, but I would think that you could potentially write off the portion of the loss that you haven't already written off(ex. if you have been depreciating the investment).  I believe(and don't quote me on this) if you sell any real estate investment property there is a recapture of any previous depreciation you have.  But like I said, please consult a tax specialist.

Happy Hunting, and let me know how if I can be of any other assistance!
Chris

P.S.  If the market continues to drop another 20% the next 3 years, we are in for a rough go of it!!!
  • March 22 2012
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Profile picture for Ofe Polack
Have a word with a tax consultant regarding how to write down your losses.  Best of luck!
  • March 22 2012
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Only your accountant can answer that.
  • March 22 2012
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Profile picture for Jason Conrad
I Believe there is a new tax law that has to deal with this situation if you declare your self as a real estate expert. I agree that you need to contact a tax consultant to find out all the details.
  • March 22 2012
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Profile picture for user110052
That is sound advice, thank you all
  • March 23 2012
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