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Level 2
November 9, 2022
Question

Taxpayer purchased property never renter or lived in property. Later sold property at loss. Does it needed to be reported on Tax return? If so should it be reported on Schedule D

  • November 9, 2022
  • 1 reply
  • 13 views

Taxpayer purchased property never rented or lived in property.

Held for two years and then sold property at loss. Does transaction need to be reported on return.

If so which form and can Loss be deducted?

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1 reply

IRonMaN
Level 15
November 9, 2022

What was the original purpose for buying the property?

Slava Ukraini!
DaisyMae8Author
Level 2
November 9, 2022

Originally to use as a rental property. But things changed.

No income was ever generated.

sjrcpa
Level 15
November 9, 2022

Yes it needs to be reported. There will be a 1099-S with the sale price. IRS will come calling if it is not on the return.

The more I know the more I don’t know.