My client purchased a property for investment purposes and made significant improvements on it. After about 1 1/2 year later sold the property for significant loss. Is the loss deductible in the year of sale.. He has rental income from other residential properties.
Well, i’d want more information before calling it a capital loss. First, how large is the loss ? How many other rental properties are owned ? What was the intent of this property use, was it listed for rent, if it was, for how long ? Why did he decide to sell.
Do a lot of google tax research, trying to find similar fact pattern.