"

Can I claim a loss on the sale of my home?

August, 13 2014 by Dave Du Val, EA
houses

Hey Dave,

My personal residence cost basis is higher than the expected sale price. Is there a way to get a tax benefit from a loss on this property?

Misha



Misha,

I wish I had better news for you.  As a general rule, losses from the sale of your personal residence are nondeductible. This “theme” can be found throughout the tax code − if the item (your personal home, in this case) is not for business or investment use, then the resulting loss is considered personal and, therefore, not deductible.  Another good example of this is the sale of a personal use vehicle.  Ninety nine percent of the time we take a loss on the sale, and it is not deductible.

Deductibly Yours,

Dave

Want peace of mind?

Learn About Prepaid Audit Defense

CATEGORIES
View All Articles
TaxAudit Blog Home
Submit a Question
 
Dave Du Val, EA

Dave Du Val, EA
Chief Compliance Officer for TRI Holdco

 
Dave Du Val, EA, is Chief Compliance Officer for TRI Holdco. Inc., the parent company of TaxAudit, and Centenal Tax Group. A nationally recognized speaker and educator, Dave is well known for his high energy and dynamic presentation style. He is a frequent and popular guest speaker for the California Society of Tax Consultants, the California Society of Enrolled Agents and the National Association of Tax Professionals. Dave frequently contributes tax tips and information to news publications, including US News and World Report, USA Today, and CPA Practice Advisor. Dave is an Enrolled Agent who has prepared thousands of returns during his career and has trained and mentored hundreds of tax professionals. He is a member of the National Association of Tax Professionals, the National Association of Enrolled Agents and the California Society of Enrolled Agents. Dave also holds a Master of Arts in Education and has been educating people since 1972. 
 

Recent Articles

Congress enacted the SECURE 2.0 Act of 2022 (SECURE 2.0), which adjusted some of the contributions you can make to your retirement plans.
Learn More ›
What does the balance sheet represent in your tax return? A balance sheet is a financial statement that reports a company's assets, liabilities, and equity.
Learn More ›
How much the IRS charges for a payment plan or Installment Agreement depends upon the amount of debt owed, type of agreement, and other factors. Let's explore.
Learn More ›
The Saver’s Tax Credit is available to qualifying taxpayers who make eligible contributions to an IRA, qualified employer retirement plan, or ABLE account.
Learn More ›
This blog does not provide legal, financial, accounting, or tax advice. The content on this blog is “as is” and carries no warranties. TaxAudit does not warrant or guarantee the accuracy, reliability, and completeness of the content of this blog. Content may become out of date as tax laws change. TaxAudit may, but has no obligation to monitor or respond to comments.