Back to Capital Gains Tax
QUESTION DETAIL
Related User
Votes
Can we deduct losses from a home sale? For instance, we bought the house for $130,000 and closing costs were $9,800 for a total of $139,800. We sold the home 33 months later at $140,000 less $5,400 in closing costs for a total of $134,600. This resulted in a loss of $5,200.
ANSWER
The BIDaWIZ Team's Answer:
Is this your primary residence? If so, then no you cannot deduct the capital loss on the sale of your main home as per IRS publication 523. Please also note that certain closing costs can be added to the cost basis.
