"Jeff Traigle" <traigle[at]umich.edu> wrote:
- quote -

Ok, try this: It IS explicitly stated in the LAW that
losses on personal use property are not deductible. That
would include every one of your personal residences.

- quote -

You're relying on what amounts to a dumbed down version of
the law. It's not INTENDED to be a final resource for any
and all possibilities.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Jeff Traigle <traigle[at]umich.edu> writes:

- quote -

In numerous other IRS publications which mention that losses
on the sale of personal property are not deductible.

Lack of deductibility of loss on the sale of a main, or 2nd,
or 3rd, or whatever home is a consequence of the
longstanding (since there was an income tax?) general rule
that losses on the sale of personal property are *never*
deductible (even though gains on the sale of personal
property are taxable).

- quote -

If you're talking about Pub 523, it's all about "Selling
Your Home", and it's clear from the context of the
publication that it's primarily geared at people selling the
home they live in (and not homes in general), so I don't see
why one would draw any conclusions about non-main homes not
being mentioned.

In any event, IRS publications are not law and are not
binding. Even if the publication was 100% wrong (which it
certainly isn't here), at best you could point to reliance
on it as a reason to escape underpayment penalties, but
you're going to owe the tax no matter what.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Jeff Traigle wrote:

- quote -

See Internal Revenue Code Sections 165 and 262.

MTW

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Jeff Traigle <traigle[at]umich.edu> wrote:
- quote -

Sec. 165(c)

(c) Limitation On Losses Of Individuals

In the case of an individual, the deduction under subsection
(a) shall be limited to--

(1) losses incurred in a trade or business;

(2) losses incurred in any transaction entered into for
profit, though not connected with a trade or business; and

(3) except as provided in subsection (h), losses of
property not connected with a trade or business or a
transaction entered into for profit, if such losses arise
from fire, storm, shipwreck, or other casualty, or from
theft.

--- end quoted text

Publications are not law. The Code says they aren't
deductible unless the houses were used in a ...

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"Frederick Jorden" <knowtax[at]bigfoot.com> wrote:
- quote -

Where is this documented? Why would the publication state
explicitly that a loss on the sale of your main home is not
deductible if, in fact, a loss on any personal residence
real estate that isn't your main home is not deductible
either?

--
Jeff Traigle
traigle[at]umich.edu
http://www-personal.umich.edu/~traigle/

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Jeff Traigle wrote:

- quote -

You cannot deduct a loss on personal property, including
your main house. Once you move out, your Michigan home
may be considered investment property, and any FURTHER
loss may be deductible.

Is the real estate market really that bad in Michigan?
Or did you perhaps have a major rennovation which did
not add to the value of the home?

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"Jeff Traigle" <traigle[at]umich.edu> wrote:

- quote -

The limit is the same. Zero.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Jeff Traigle wrote:

- quote -

It's personal use property. No capital loss. If it was
business property (a rental for instance), then you probably
could deduct your loss.

--
Alan
http://taxtopics.net

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Jeff Traigle wrote:

- quote -

Doesn't matter. A loss on the sale of any house that is NOT
rental property nor business property is thereby personal
use property and not deductible.

ChEAr$,
Harlan Lunsford, EA n LA
tue 15 Feb 2005

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Jeff Traigle wrote:

- quote -

Losses on all personal use assets, including 2nd homes, are
not deductible.

Bill

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Jeff Traigle wrote:

- quote -

Losses on first, second, third, etc. personal residences are
not deductible.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

I'm in the process of searching for new employment in a
warmer climate and am trying to do some tax planning for the
coming year. My house in Michigan is on the market. Though I
am currently living in it, I do not plan to be residing in
it by the time I manage to get it sold. After reading
Publication 523, I was curious if there is a limit on the
amount you can deduct for a loss on the sale of a house. It
only stated a loss on your main house cannot be deducted,
but it didn't mention any limits on what you could deduct on
another house that isn't your main one.

--
Jeff Traigle
traigle[at]umich.edu
http://www-personal.umich.edu/~traigle/

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->