Date posted: April 14, 2009
I inherited a home from my great aunt and sold it 4 months later at a loss. Can I deduct the loss?
I inherited a home from my great aunt and sold it 4 months later at a loss. Can I deduct the loss?
— Submitted by Stan
Usually, a loss on the sale of property is allowed only if the property was held for investment or business purposes (not for personal purposes). However, in the case of inherited property, if you never used the home as your residence, you can deduct the loss. Your basis is the value of the home for your great-aunt's estate tax purposes (usually the value of the home on the date of death).
