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Any Tax Advantage of selling a Lot at loss?

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  • Any Tax Advantage of selling a Lot at loss?

    I bought a Lot to build home but then moved out of state. Then I thought since I am not building a house, I can have this Lot as investment and sell it for profit as property price may appreciate with time. I am trying to sell it for 2 years and finally got first offer which I am accepting at a loss. I am building a house at the place where I moved and have one time closing construction and 30 year fixed jumbo loan. I plan to refinance the loan after house is completed as mortgage interest rates have dropped.

    Can I claim any Tax benefit for the lot which I am selling at loss?

    Thanks
    Last edited by palciparum; 08-03-2020, 06:06 PM.

  • #2
    Originally posted by palciparum View Post
    I bought a Lot to build home but then moved out of state. Then I thought since I am not building a house, I can have this Lot as investment and sell it for profit as property price may appreciate with time. I am trying to sell it for 2 years and finally got first offer which I am accepting at a loss. I am building a house at the place where I moved and have one time closing construction and 30 year fixed jumbo loan. I plan to refinance the loan after house is completed as mortgage interest rates have dropped.

    Can I claim any Tax benefit for the lot which I am selling at loss?

    Thanks
    Yes, you’ll be able to take a long-term capital loss, limited to the excess of $1,500/spouse annually over offset long-term capital gains. The remainder is carried fwd indefinitely until used up except in the case of death (no c/o beyond that point).
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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