I have a $225,000. loss on a property I sold this year. How much of that can I deduct from my earnin

fhljr2
fhljr2 Member Posts: 1 Newcomer
in Credits/Deductions

I have a $225,000. loss on a real-estate property that I sold this year. How much of that can I deduct from my earnings for 2023?

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  • KFine3325
    KFine3325 FreeTaxUSA Agent Posts: 48

    Deducting a loss on the sale of a property depends on the type of property it was.

    If the property was an investment property, the loss would be reported as a capital loss on your tax return.

    If it was a rental property or business property, the loss would be reported on the corresponding schedule for that type of activity (Schedule E for rental, Schedule C for business).

    If the loss was incurred on the sale of your personal residence, the loss is not deductible on your tax return.

    More information can be located in IRS Publication 544.

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