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Maybe that's why my return went through for 2012 with the loss on it, because of the nature of the property itself.

No, your return went through initial processing because there weren't any math errors on it. No analysis is done of it in initial processing unless something "looks funny." This situation wouldn't qualify.

However, once the computers start looking at filing history and see no Schedules E on your prior returns, no 4797 reporting the sale, etc., they could well get curious.

You need to amend your return. Capital losses on personal residences are not allowed. There's even a special code for reporting the sale.

Rule Your Retirement Home Fool
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