I have client who inherited his parent's condo in 2013. No family member lived in it since then. It was sold in 2017. The value in 2013 was $72,000. It was sold for $40,000 (not taking into account cost of sale). Does he have loss?
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The IRS says no, but there are court cases allowing the deduction. One attorney says to look at the motivation for holding the property. Waiting for a profit? Or, family disputes or other personal reasons.Originally posted by S&D Associates View Post -
And, also, how was the FMV at DOD established? Was it reasonable at the time? Was an appraisal done? Tax assessments will not always be honored as proof of FMV but they are better than nothing. It is more important in documenting a loss than a gain. Was this a vacation/second home or personal residence? Assuming if vacay or 2nd residence, it was not rented during the intervening years.Last edited by Burke; 03-31-2018, 10:07 AM.Comment
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oops, posted reply on wrong threadComment
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i would ask how value was determined in 2013. in the 4 years not used at all, did it deteriorate to the point of a $30,000 loss. isn't inherited property allowed a loss?Comment
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