Loss on the sale of Real- Estate - Spidell

Loss on the sale of Real- Estate

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Message Board Loss on the sale of Real- Estate

  • This topic has 4 replies, 3 voices, and was last updated 1 year ago by Lynn Freer.
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    • #274493
      Vijay Joshi
      Participant

      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.

    • #274500
      Lynn Freer
      Participant

      It’s a capital loss but cannot offset passive income because it’s an investment.

    • #274584
      Vijay Joshi
      Participant

      Thank you for your reply.

      So this loss will be treated same as gain and losses from stock sale.

    • #274623
      William Dewberry
      Participant

      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.

       

    • #274626
      Lynn Freer
      Participant

      If it wasn’t rented, it is an investment property which is treated like the sale of stock and is not a 4797 loss.

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