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Tax Law (Questions About Taxes)/Income taxes and quit claim


I bought a house in 2006 for $181,000.  I quit claimed it to my brother and myself in January 2011.  We have it up for sale now, and we will have to take a loss of at least $40,000.  Can we direct all the proceeds from the sale to my brother and let him claim a loss on the federal income taxes?  Thank you.



Thanks for your question.

No, the loss must be allocated based on the ownership interests.    You don't mention the use made of the house.  If it was a personal use residence, the loss is not deductible.  If it was a rental, you must reduce the basis for and depreciation allowed.

Hope this helps.

John Stancil, CPA

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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