Warning

 

Close

Confirm Action

Are you sure you wish to do this?

Confirm Cancel
Member Login
Posted: 7/8/2011 2:54:25 PM EDT
I know you have to pay taxes on any gains from selling your home... what about losing money on your home?
Link Posted: 7/8/2011 2:56:32 PM EDT
[Last Edit: 7/8/2011 2:59:11 PM EDT by gogoquadzilla]
look up insolvency or form 982 I think.


ETA- I don't think that's it. First post did NOT nail it this time.
Link Posted: 7/8/2011 2:56:37 PM EDT
this topic is highly relevant to me considering a just took a $65,000 loss on mine.
Link Posted: 7/8/2011 2:57:04 PM EDT
Originally Posted By 03PSD:
this topic is highly relevant to me considering a just took a $65,000 loss on mine.


OUCH
Link Posted: 7/8/2011 3:00:10 PM EDT
Tag for when I offload one.
Link Posted: 7/8/2011 3:06:23 PM EDT

Originally Posted By roboman:
Originally Posted By 03PSD:
this topic is highly relevant to me considering a just took a $65,000 loss on mine.


OUCH

yes indeed, but i had to stop the bleeding. shit isnt going to get better anytime in the next 5 years. i had an opportunity to relocate back closer to family and to a job with a 20% pay increase + no state income tax. I figure it will take me a year to make up the loss. im fortunate i had the resources to do it. writing a check for tens of thousands of dollars at closing when you are the seller blows donkey dicks.
Link Posted: 7/8/2011 3:06:54 PM EDT
Obama is trying to figure out how to tax losses too.
Link Posted: 7/8/2011 3:07:28 PM EDT
You can if it's a rental.
Link Posted: 7/8/2011 3:12:35 PM EDT
No. It is NOT deductible. Google IRS and search on capital loss on personal residence.

If you rent it for a year before you sell it, you can write it off.
Link Posted: 7/8/2011 3:13:30 PM EDT
No - you cannot.
Link Posted: 7/8/2011 3:17:23 PM EDT
No. The loss on the sale of your personal "residence" is not deductible.

However, if you use it as rental property, it can be written off as a business loss.

Here's the short and swift response from the IRS:

IRS policy on loss on sale of a home
Link Posted: 7/8/2011 3:30:10 PM EDT
Originally Posted By PatriotAr15:
I know you have to pay taxes on any gains from selling your home... what about losing money on your home?


Is a gain on a house taxable? What if you reinvest part or all of the gain in another home? If you put it toward another home, how long do you have to purchase the new home?
Link Posted: 7/8/2011 3:30:18 PM EDT
[Last Edit: 7/8/2011 3:30:36 PM EDT by Bubbatheredneck]
The .gov is a shrewd 'business partner".

You put up all the capital, you take the all risk.
The .gov shares the profits.
The .gov leaves you holding the losses.


Link Posted: 7/8/2011 3:33:05 PM EDT
[Last Edit: 7/8/2011 3:34:02 PM EDT by AlvinYork]
Originally Posted By PatriotAr15:
I know you have to pay taxes on any gains from selling your home... what about losing money on your home?


Boo hoo, that's just the price of you being able to own a home, what did you think, you'd actually be able to make money on your home? You're obviously rich so sit down and shut up, you must be selfish and racist too.
Link Posted: 7/8/2011 3:34:53 PM EDT

Originally Posted By Mike_48:
Originally Posted By PatriotAr15:
I know you have to pay taxes on any gains from selling your home... what about losing money on your home?


Is a gain on a house taxable? What if you reinvest part or all of the gain in another home? If you put it toward another home, how long do you have to purchase the new home?

The first $250k in gain for singles and $500k for couples is not taxed, or something around those numbers.
Link Posted: 7/8/2011 3:39:16 PM EDT
Plus as a rental, the only loss that is deductible, is the loss from the start of the rental period, to the end. ie: if the biggest drop has already been experienced, then setting up a 1 year lease doesn't put the toothpaste back in the tube.
Link Posted: 7/8/2011 3:41:52 PM EDT
Originally Posted By iRidiculous:
Obama is trying to figure out how to tax losses too.


Link Posted: 7/8/2011 3:42:33 PM EDT
Believe me, the tax laws are tilted in favor of the government at every turn. You cannot win.
Link Posted: 7/8/2011 3:43:31 PM EDT
I took it in the arse when I sold my house last month. I ended shelling out about 18,000!!

I'm so pissed at the way things are going, I can't see straight! We did nothing but put money into the house to make it nice.

I'm even more pissed because I though I could write off the loss, and now I find the loving .gov has fucked me yet again!!

On a lighter note, I'm completely debt free except for monthly utility bills and rent. I can save some serious money that way things are now.

Oh yea, FBO!!
Link Posted: 7/8/2011 3:53:19 PM EDT
Originally Posted By PowerSlave:
I took it in the arse when I sold my house last month. I ended shelling out about 18,000!!

I'm so pissed at the way things are going, I can't see straight! We did nothing but put money into the house to make it nice.

I'm even more pissed because I though I could write off the loss, and now I find the loving .gov has fucked me yet again!!

On a lighter note, I'm completely debt free except for monthly utility bills and rent. I can save some serious money that way things are now.

Oh yea, FBO!!


BHO the great leveler, patron saint of marxists, master community organizer, most intelligent person in the world, and the next savior of mankind.
Link Posted: 7/8/2011 3:59:29 PM EDT
Originally Posted By PowerSlave:
I took it in the arse when I sold my house last month. I ended shelling out about 18,000!!

I'm so pissed at the way things are going, I can't see straight! We did nothing but put money into the house to make it nice.

I'm even more pissed because I though I could write off the loss, and now I find the loving .gov has fucked me yet again!!

On a lighter note, I'm completely debt free except for monthly utility bills and rent. I can save some serious money that way things are now.

Oh yea, FBO!!
You are free, a lot of others are taking bigger hits than you,

Link Posted: 7/8/2011 4:05:50 PM EDT

Originally Posted By cobra-ak:
Originally Posted By PowerSlave:
I took it in the arse when I sold my house last month. I ended shelling out about 18,000!!

I'm so pissed at the way things are going, I can't see straight! We did nothing but put money into the house to make it nice.

I'm even more pissed because I though I could write off the loss, and now I find the loving .gov has fucked me yet again!!

On a lighter note, I'm completely debt free except for monthly utility bills and rent. I can save some serious money that way things are now.

Oh yea, FBO!!
You are free, a lot of others are taking bigger hits than you,


If I sold mine, I'd have to show up at closing with around $35k...being as I can't produce that much in the form of a check...I'd have to take out a loan to sell my house.

There's a reason we're renting it...
Link Posted: 7/8/2011 4:07:29 PM EDT
nope
Link Posted: 7/8/2011 4:08:15 PM EDT
Originally Posted By robplumm:

Originally Posted By cobra-ak:
Originally Posted By PowerSlave:
I took it in the arse when I sold my house last month. I ended shelling out about 18,000!!

I'm so pissed at the way things are going, I can't see straight! We did nothing but put money into the house to make it nice.

I'm even more pissed because I though I could write off the loss, and now I find the loving .gov has fucked me yet again!!

On a lighter note, I'm completely debt free except for monthly utility bills and rent. I can save some serious money that way things are now.

Oh yea, FBO!!
You are free, a lot of others are taking bigger hits than you,


If I sold mine, I'd have to show up at closing with around $35k...being as I can't produce that much in the form of a check...I'd have to take out a loan to sell my house.

There's a reason we're renting it...
LOL you have to pay to sell, right now its not the time to sell

Link Posted: 7/8/2011 4:17:37 PM EDT

Originally Posted By cobra-ak:
Originally Posted By robplumm:

Originally Posted By cobra-ak:
Originally Posted By PowerSlave:
I took it in the arse when I sold my house last month. I ended shelling out about 18,000!!

I'm so pissed at the way things are going, I can't see straight! We did nothing but put money into the house to make it nice.

I'm even more pissed because I though I could write off the loss, and now I find the loving .gov has fucked me yet again!!

On a lighter note, I'm completely debt free except for monthly utility bills and rent. I can save some serious money that way things are now.

Oh yea, FBO!!
You are free, a lot of others are taking bigger hits than you,


If I sold mine, I'd have to show up at closing with around $35k...being as I can't produce that much in the form of a check...I'd have to take out a loan to sell my house.

There's a reason we're renting it...
LOL you have to pay to sell, right now its not the time to sell

No shit, huh? We bought on the downslide...and it kept sliding

Link Posted: 7/8/2011 4:36:36 PM EDT
Certainly you can. It's a capital asset and you can deduct the loss so long as you don't exceed whatever the threshold (income related) is.
Link Posted: 7/8/2011 4:49:34 PM EDT
[Last Edit: 7/8/2011 4:50:09 PM EDT by MillerSHO]
My general rule of thumb is if it benefits you/me, it probably isn't legit.
Just about every base has been covered to have you part with your money.
Link Posted: 7/8/2011 4:55:30 PM EDT
Losses (Homes, Stocks, Other Property)

Question: Is the loss on the sale of your home deductible?



Answer: The loss on the sale of a personal residence is a nondeductible personal loss.



Additional Information:


Publication 523, Selling Your Home
Tax Topic 409, Capital Gains and Losses


Category: Capital Gains, Losses/Sale of Home




Subcategory: Losses (Homes, Stocks, Other Property)


You know, you can look up answers by googling a question.
Link Posted: 7/8/2011 5:15:28 PM EDT
That is one of the primary reasons I rented our house instead of taking a bath on it. Turned it into a rental property in Jan of 2010. 2011 assessed value dropped by 35%. To compete better in the neighborhood we include utilities which of course we write off to soften the loss. Of course, I write off everything from gas for the lawnmower to mileage to pick up the rent or check on the property. The way I calculate it, someone is paying our mortgage for us as we make about an extra 300$ a month. Of course, renters can be a PITA and the house still ain't worth shit so FBHO!!!
Link Posted: 7/8/2011 8:28:21 PM EDT

Originally Posted By TooBigToFail:
That is one of the primary reasons I rented our house instead of taking a bath on it. Turned it into a rental property in Jan of 2010. 2011 assessed value dropped by 35%. To compete better in the neighborhood we include utilities which of course we write off to soften the loss. Of course, I write off everything from gas for the lawnmower to mileage to pick up the rent or check on the property. The way I calculate it, someone is paying our mortgage for us as we make about an extra 300$ a month. Of course, renters can be a PITA and the house still ain't worth shit so FBHO!!!

Be glad you can rent it for more than the motgage...mine in Macon drops about $280/month under my mortgage. Lots of write offs in a rental, though. I visited this year as part of our family reunion...which makes the hotel to and from there a write off, meals to and from write offs, mileage to and from a write off...

And yeah...still a PITA.
Link Posted: 7/8/2011 8:48:28 PM EDT

Originally Posted By 03PSD:

Originally Posted By roboman:
Originally Posted By 03PSD:
this topic is highly relevant to me considering a just took a $65,000 loss on mine.


OUCH

yes indeed, but i had to stop the bleeding. shit isnt going to get better anytime in the next 5 years. i had an opportunity to relocate back closer to family and to a job with a 20% pay increase + no state income tax. I figure it will take me a year to make up the loss. im fortunate i had the resources to do it. writing a check for tens of thousands of dollars at closing when you are the seller blows donkey dicks.



Join the club. Personally, it was worth every penny for me. Kinda like a divorce, except I was getting rid of a different kind of bitch.

Whenever I find myself in a painful situation like that I like to remind myself that I am not the first or the last person that will go through those exact same set of circumstances. Helps me feel normal.

Link Posted: 7/8/2011 8:54:26 PM EDT
Originally Posted By Bubbatheredneck:
The .gov is a shrewd 'business partner".

You put up all the capital, you take the all risk.
The .gov shares the profits.
The .gov leaves you holding the losses.




Unless you're too big to fail.
Link Posted: 7/9/2011 1:09:20 PM EDT
Originally Posted By robplumm:

Originally Posted By cobra-ak:
Originally Posted By robplumm:

Originally Posted By cobra-ak:
Originally Posted By PowerSlave:
I took it in the arse when I sold my house last month. I ended shelling out about 18,000!!

I'm so pissed at the way things are going, I can't see straight! We did nothing but put money into the house to make it nice.

I'm even more pissed because I though I could write off the loss, and now I find the loving .gov has fucked me yet again!!

On a lighter note, I'm completely debt free except for monthly utility bills and rent. I can save some serious money that way things are now.

Oh yea, FBO!!
You are free, a lot of others are taking bigger hits than you,


If I sold mine, I'd have to show up at closing with around $35k...being as I can't produce that much in the form of a check...I'd have to take out a loan to sell my house.

There's a reason we're renting it...
LOL you have to pay to sell, right now its not the time to sell

No shit, huh? We bought on the downslide...and it kept sliding

I look at some good houses here in Miami, walk in some awesome "mansions" but they are asking way too much. if I sell my apartment (2 of them) right now they are both paid off I will not get the price that I want to upgrade. I have about $600 in maintenance fees way cheaper than rent

Top Top