Your subject line says it all. There is no deduction for a
loss on the sale of any personal use asset. (That
restriction is not limited to the sale of a primary
residence at a loss.)

Bill

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Paul Trynoski <afn02552[at]afn.org> writes:

- quote -

Two ways:
(1) Instead of putting actual basis in the "basis" field,
put the sales proceeds in the "basis" field so the gain/loss
is zero. The IRS doesn't particularly care with the basis is
so long as sales proceeds match what was reported to them
and that the reported gain/loss is correct (and in this case
zero is correct since the loss is non-deductible).

(2) Leave the loss as is but create a new dummy sale entry
with $6000 of proceeds and zero basis to offset the
unallowable loss. This will result in your return showing
$6000 more in total proceeds than were reported to the IRS,
but the IRS doesn't care about that (they only care when
proceeds on your return are *less* than what was reported).

Given that the IRS instructions (you say) say to report the
sale but put a zero in the gain/loss field, I'd go with (1).

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

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Paul Trynoski" <afn02552[at]afn.org> wrote

- quote -

That's because a personal use loss like this isn't tax
deductible.

- quote -

You shouldn't have to report it at all.

If you have a Form 1099B, set your cost basis equal to your
sales price to report no gain - no loss either.

--
Paul A. Thomas, CPA
Athens, Georgia

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Paul Trynoski wrote:

- quote -

Can't take a loss on personal residence. Just don't show it
in the software. If you received a 1099S, then just show
buy and sell as same amount.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I've used TaxAct Deluxe for several years with no negative
issues. In 2005, we sold a second home and incurred a
$6,000 loss. TaxAct offers guided input for sale of a
"main" home, not of a 2nd home - I tried inputting as if it
was a main home but the resulting loss won't transfer to a
Schedule D. The only way I can find to generate a Schedule
D is to create a 1099-B, which transfers cost and sale
amounts to Schedule D, Line 8, and the $6,000 loss to column
f of that line. IRS Schedule D instructions tell me to
enter zero in column f of Line 8 because the loss is not
deductible. My attempt to enter zero via override generated
a TaxAct warning that my return can't be e-filed if I
override. Attempts to enter amounts directly to Schedule D
result in the same no e-file warning. I've requested
additional guidance from TaxAct support and am awaiting
their response. Is this a problem specific to TaxAct? Any
experience with other software that will allow me to e-file
when reporting a nondeductible capital loss?

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >