If I sell my residence at a loss ...

Apr 25, 2008 2 Replies

Do I have to put it on my tax return? It's not a loss that I can claim, but someone did take my SSN at the closing. Is the IRS going to be looking for that on my return??


If it's your main home, that you owned and lived in during the two-year period prior to sale, no need to even report.

If not, report it and calculate the loss. On the next line write "Personal Property - Loss Disallowed" and enter as a gain, the amount of los just shown, so the net gain/loss is zero.

The IRS counsel responsible for Schedule D and its instructions does not want to see it reported in the above (main home) circumstances, even if a 1099-S had been issued.

Big snip

But the California Franchise Tax Board (California's iR) will send a nasty letter stating that you sold something, have no basis, and therefore you owe.

We always tell taxpayers with a 1099S or a 1099B to file to keep the FTB off their back

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