You cannot claim a loss from the sale of personal residences, but you can deduct losses from rental property sales. If it looks like you are going to be taking a loss on your primary home, consider moving out and renting out the property before selling it.
The best advice would be to hold off on selling the property until the market gets better and you can actually sell for a profit, but you shouldn’t hold your breath if it looks like you’re going to lose more money. It may be more beneficial to move out of your home and rent it out before selling, so you can actually deduct the loss from the sale.
This is a blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies. Tax Planning | Real Estate Loss, Convert to Investment Property for 2 Years is brought to you by SimplifyEm Pay Rent Online and Property Management Software
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