Explore the 1,000’s of tax questions answered by professionals.

Back to list


Related User


I bought a condo for my mother in 2008 in my name (not my primary residence so does it count as an investment property?). It was a foreclosure I bought for $135,000 and put about $20,000 in upgrades/repairs into it. She moved out and I am currently living there and looking to sell. Likely would only get $90,000 after all fees/commissions. Can I take that ~$65,000 loss on my taxes? Does it reduce my taxable income? Is there a cap? How does that work? Property is in Illinois.


The BIDaWIZ Team's Answer:

Unfortunately, losses on primary residences are nondeductible per IRS publication 523. The only way you may be able to deduct the loss is if it was an investment property that was rented to tenants.

The BIDaWIZ Team



  • Currently 4.6190/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
1547 Ans.