I purchased a property in 2022. After spending a large amount on improvements, I had to sell it in 2024 for a large loss. How can I deduct that loss on my 2024 taxes? Do I use Section 1231?
What kind of property was it? Was it held for investment purposes? Was it rented? Did you have personal use? All of those things factor into determining how a loss might affect your taxes.
You may want to review IRS Publication 544, "Sales and Other Dispositions of Assets" for more detailed information. https://www.irs.gov/publications/p544
Thank you, JMSSGV. I will read that publication.
