can you show a loss on property sold

    if i sold a rental property and sold it for less than i bought it can it be reported as a loss on my federal tax return

    0  Views: 215 Answers: 2 Posted: 9 years ago

    2 Answers

    In Australia you definitely can as I had that experience some years ago.

    As you failed to say where you live I can say no more except it is always good practice to give your country/state of origin on a world wide site.

     In your case all you needed extra was "in bullamakanka"

    I could be wrong but my answer would be: It depends. 

    You might possibly have a gain on the a rental property that you sold for at a loss.  For example, if you bought a rental property for $100,000 and subsequently sold it for $90,000, you have just realized a loss of $10,000, right?  Not necessarily.  You might have to adjust your cost lower than $100,000 if you have depreciated the property by $25,000 over the years.  Since you took depreciation of $25,000 over the past few years, your new cost basis would be adjusted to $75,000, or $100,000 - 25,000. 

    Hence, if you sold the property for $90,000, your taxable gain would be $15,000, or $90,000 sales price minus new cost basis of $75,000.



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