1.46- Is the Loss on the Sale of a Home Deductible?

Is the loss on the sale of my home deductible?

Answer:

Maybe. A loss on the sale or exchange of personal use property, including a capital loss on the sale of your home used by you as your personal residence at the time of sale, or loss attributable to the part of your home used for personal purposes, isn't deductible. Only losses associated with property (or a portion of property), used in a trade or business and investment property (for example, stocks) are deductible.

Additional Information:

• Tax Topic 409 - Capital Gains and Losses

• About Publication 523, Selling Your Home

• Publication 544, Sales and Other Dispositions of Assets

• Publication 587 Business Use of Your Home

• Form 4797, Sales of Business Property

Subcategory:

Losses (Homes, Stocks, Other Property)

Category:

Capital Gains, Losses, and Sale of Home