Including all closing costs second home sells for $3,000 below basis, 3 months after one spouse dies. Both spouses vacated home a few weeks before the death. The surviving spouse did not return to the home between the death and the sale. House was owned jointly iwth rights of survivorship. Can a loss be claimed on the decedent's 50%, because it changed from personal use to investment property upon the death?
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I do not see where
it could be called investment property. The surviving spouse retained 100% ownership and it did not go into an estate, so could not pick up investment status there. It is still the residence of the taxpayer if no effort was made to turn it into income producing property, just as any first or second home would . No loss allowed. IMHOAJ, EA
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