Loss on a property sale

Discussion in 'After Hours Lounge (Off Topic)' started by Eric Samonte, Nov 6, 2005.

  1. Eric Samonte

    Eric Samonte Screenwriter

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    So we're selling our other house in Punxsutawney (yes the ground hog place) but a loss of more than $5000. Not much yes but now after inspections it turns out we need to replace the boiler which would run up to another $4500. Now I heard losses like this can be regained via it being tax deductible or something. Does anybody have insight on this? I also plan on speaking with an accountant about this on Monday.
    We need to move on and sell that property as it has been sitting there for 2 years now. Better to sell it off now even at a loss.
     
  2. Carl Miller

    Carl Miller Screenwriter

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    Losses on sale of personal use property are not deductible...So in general terms, the answer to your question is it depends on what you used the second home for.

    If it was used as a rental property, you might be able to deduct a loss on the sale because then it would be considered business property.

    If it was strictly a vaction home, or a second home that wasn't rented, I believe it would qualify as personal use property and then no loss would be deductible.

    Your accountant will know for sure though.
     
  3. Micah Cohen

    Micah Cohen Screenwriter

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    Damn, Eric! What happened that you have to take this hit? (That's awful!) Did you... Overpay? What's the story behind this? I'd like to know.

    MC
     
  4. Michael Warner

    Michael Warner Supporting Actor

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    I feel your pain. I just took an $8,000 loss on a house in Troy, MI. Fortunately I had rolled over all of the profits from a previous house into that one and didn't take out any home equity loans so we're still coming out ahead in the long run. We're relocating and had to sell fast plus the real estate market here is going down the tubes. Better to sell now and beat feet because things aren't looking good for our rust belt states at the moment.

    The real estate bubble is certainly starting to deflate in specific areas. Fortunately prices never got all that crazy in Michigan so we didn't take too bad of a hit but it still isn't a happy thing to have to do.
     
  5. Eric Samonte

    Eric Samonte Screenwriter

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    Punxsy isn't all that of a good market anyways. We just don't like renting that we went ahead and bought this house thinking we would be staying for good ( which we will never do again). We didn't overpay, real estate market is just too slow over there. Believe or not, a 2 story brick house with a 2 car detached garage and 16 x 32 inground pool at $95000 is priced kinda high over there. We would just like to move on as well as get over the pain of having 2 mortgages.
     

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