Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
If this was his primary residence, then no, probably not (which I learned the hard way selling a home last year at a $40,000 loss). This is the flip side of the tax breaks you can get from selling a personal residence at a profit -- you get no writeoff for a loss. I'm not aware of any exceptions for hardship or "forced move." (If there is any, I'd love to hear it so I can amend my 2006 return!)

Since he did not live in the house for the 2 out of 5 years, it would appear to me that he may be able to take the loss. Remember, he would have to pay taxes on the gain. At least, he would have no gain to report.

Anyone else have ideas?

Donna
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement