Loss On The Sale

Expert, localized Los Angeles answers provided by Heather Roy

Loss On The Sale
	Dear Edith: I keep reading about how real estate prices are going up, but this summer I sold my vacation cottage and by the time I subtracted those costs of selling I actually had a small loss. If I had a profit, I’d have to declare it on my income tax, but my accountant says I can not take that loss as a deduction.

	I’m afraid it is right, though. The IRS says when you sell private property like that, your loss isn’t deductible, any more than if you sold a sofa for less than you paid for it. If the cottage had been rental or income property, the tax treatment would be different.
	Edith Originally published on December 5, 2005

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