I sold a rental property at a loss, can I deduct that from my personal taxes/income?

Public Comments

1. Yes.
2. There is a schedule where you can break down business losses/ gains...it might be schedule G, but i'm not sure.
3. Yup it goes in as a loss on your capital gains and is subtracted from your gross income.
4. the loss would get reported on Form 4797 and is section 1231 property. note that if this property was partly used for personal use, the loss would have to be allocated b/w business and personal and the personal loss would not be deductible. calculating your cost basis in a rental property can be tricky since you have to subtract accumulated depreciation youve taken over the years. Purchase price + Purchase costs (title & escrow fees, real estate agent commissions, etc.) + Improvements (replacing the roof, new furnace, etc.) + Selling costs (title & escrow fees, real estate agent commissions, etc.) - Accumulated depreciation (as reported on your tax forms) = Cost Basis