TP sold personal residence for loss.

[AZ-Tax]

TP sold personal residence for loss and resided in house all 5 yrs of owning it. On the top of my head I am thinking mortgage interest and property taxes.

[ATSMAN]

TP sold personal residence for loss and resided in house all 5 yrs of owning it. On the top of my head I am thinking mortgage interest and property taxes.

Is your question can you deduct a capital loss? No It is personal property.

You can still deduct on Sch A the mortgage interest and property taxes for the year.

[AZ-Tax]

Yes, I forgot that enter that part.

Is your question can you deduct a capital loss? No It is personal property.

You can still deduct on Sch A the mortgage interest and property taxes for the year.

Yes, I forgot that enter that part but what about the HUD/Settlement statement from the Sale. Other then Prop taxes and Interest, what else might be deductible?

[Burke]

The interest (even pro-rated as shown on the HUD-1) is likely included on the 1098 from the mortgagor. Need to check that. Any pro-rated property taxes are accounted for on the return as to whether it is credit or debit item. If the TP paid them in advance prior to sale, then he may have a credit (refund) on the HUD-1. This is deducted from the amount claimed on Sche A. If he had not paid them currently when the sale occurred, then he may have been charged for a pro-rated portion up to and including the date of the HUD-1. This amount would be claimed as a deduction on his Sche A. These are the only two things available to him.

[taxea]

what exactly are you trying to accomplish? The sale has to be reported. You include taxes, interest, cost of sale, prior improvements, other expenses to make the sale and allowable deduction (250-500K) to determine gain or loss. If this creates a gain he is taxed on it, a loss he eats.

[taxmom34]

wrong!!!

sale of personal residence that he lived in for 5 years whether sold at a gain or loss is not reported.

[zeros]

You Are Correct

sale of personal residence that he lived in for 5 years whether sold at a gain or loss is not reported.

TaxMom, you are correct, Sec 121

[Gene V]

See TTB page 6-2 for Tax Treatment of Settlement Costs