I had a capital loss on the sale of my home, how can I recoup this?

Answer by  patti (29325)

At the end of 2009, it is most common for homes to be sold far below their appraised value of two or three years earlier. In an economic downturn, this is not unusual. Once a property has been sold at a loss, there are tax considerations which may ease the bite, but there is no way to "recoup. "

Answer by  Ali41 (1593)

Unfortunately you cannot. Federal tax law prohibits you from claiming a tax loss on your principal residence. This is different than if you invested in a real estate property that you did not live in - in that situation you may be able to claim a loss. This also means that gains cannot be taxed up to a certain amount.

Answer by  Schistosomiasis (61)

Capital loss on home sales may be considered business losses on federal income tax. If the capital loss for the year exceeds the federal tax paid, the loss may be split over the same time period that the property can be depreciated. For single family homes, this period is 20 years. For businesses, including multiple family homes, this period shoreter.

Answer by  tamarawilhite (17883)

This loss can be used to reduce taxes on any other capital gains that were taxed for you in that same year. However, if you sold the home at a loss, you do not directly get the money back.