Accounting, Payroll & Pension Issues/Real Estate Tax


I owned a 2 family (2 family flat) residence for over 30 years. For over 20 years, I lived in 1 unit & claimed a 40% homestead exemption.
Last year, I moved, & both units became investment property in December 2012.

In October 2013 I sold this property for $8.500.00., a loss of $17,900.00.
Since this was investment property when sold, can I legally claim a loss on my IRS 1040 for 2013?

Thanks in advance,

The issue is your statement  "Last year, I moved, & both units became investment property in December 2012. " I am not certain about the conversion of a personal residence into investment property I found the following: The loss is available for tax purposes only if the owner can establish that the home was in fact converted permanently into income-producing property, and isnít merely renting it temporarily until he can sell.

As long as that is not a problem, I see no reason wh you should not be able to decuct the loss.

Please keep in mind that this forum is for bookkeeping, payroll and pension issues rather than income tax questions  Please check the tax planning forum on Allexperts.

As always, check with your tax preparer.

Accounting, Payroll & Pension Issues

All Answers

Answers by Expert:

Ask Experts


Arthur Naman


General accounting and bookkeeping questions. Specific questions pertaining to: monthly bookkeeping, preparing financial reports; reconciling accounts.

I cannot answer questions pertaining to pension or retirement planning.

This is not a forum to have homework answered. Please do your own homework.


30 years' experience doing tax and accounting work

MPA from Univ. of Texas at Austin, MBA Golden Gate Univ, San Francisco CA

©2017 All rights reserved.