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Author: codger41 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123529  
Subject: Personal Residence or Rental? Date: 12/24/2010 9:49 AM
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In June 2007 I bought a house, fixed it up, and rented it out for 2 1/2 years. I moved into the house in January, 2010 and currently live there.
I am considering selling the house. I estimate that I would net $120,000 in a sale, but my cost basis is $160K, so I would experience a loss. I depreciated the house about $12,000 total on my 2007, 2008 and 2009 income tax.

Can I sell the house, claim a loss on the sale ($160,000-$120000=$40,000) deduct the depreciation of $12,000 and take a long term loss of the remaining $28,000?

I guess the question is whether or not the house can be claimed as a rental house and not a personal residence. I know that a loss on a personal residence is not deductible.
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