Selling Your Home At A Loss? Here's Why The IRS Won't Help

Benzinga_recent_news11-17

Homeowners who sell at a loss usually get no tax break, even as falling prices and higher borrowing costs push more sales into the red, tax experts warn. The IRS treats a primary residence as personal...

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Here's Why The IRS Won't Help\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-17 09:41 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/news/25/11/48890310/selling-your-home-at-a-loss-heres-why-the-irs-wont-help><strong>Benzinga_recent_news</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Homeowners who sell at a loss usually get no tax break, even as falling prices and higher borrowing costs push more sales into the red, tax experts warn.\nThe IRS treats a primary residence as personal...</p>\n\n<a href=\"https://www.benzinga.com/news/25/11/48890310/selling-your-home-at-a-loss-heres-why-the-irs-wont-help\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IRS","symbol_name":"IRSA Inversiones y Representacio","start_time":0,"source_url":"https://www.benzinga.com/news/25/11/48890310/selling-your-home-at-a-loss-heres-why-the-irs-wont-help","article_id":"2584690646","we_media_id":null,"thumbnails":["https://cdn.benzinga.com/files/images/story/2025/11/16/For-Sale-Estate-Agency-Sign-On-Street-Of.jpeg?optimize=medium&dpr=2&auto=webp&width=240"],"rights":{"source":"benzinga_recent_news","url":"https://www.benzinga.com/news/25/11/48890310/selling-your-home-at-a-loss-heres-why-the-irs-wont-help","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2584690646","pubTimestamp":1763343660,"columns":[],"sourceInfo":{"source_id":"benzinga_recent_news","name":"Benzinga"},"weMediaInfo":null,"summary":"Homeowners who sell at a loss usually get no tax break on primary residences. IRS treats it as personal property, not an investment.","collect":0,"end_time":0,"defaultTopTitle":"benzinga.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"IRS":"IRSA Inversiones y Representacio","BK4195":"互助储蓄与抵押信贷金融服务","BK4233":"房地产运营公司","BK4205":"房地产经营公司","BK4211":"区域性银行","HBCP":"Home Bancorp Inc"},"translate_title":"亏本卖房？这就是国税局不会提供帮助的原因","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"IRS":1.5,"HBCP":1.5},"content_text":"Homeowners who sell at a loss usually get no tax break, even as falling prices and higher borrowing costs push more sales into the red, tax experts warn.\nThe IRS treats a primary residence as personal-use property, not an investment, so you generally can't deduct a loss when you sell your main home for less than you paid. By contrast, the tax code lets you exclude up to $250,000 of gains on a home sale and ($500,000 for married couples), but it offers no similar relief for losses, as the IRS emphasizes.\nYou move into a different territory when the property is strictly an investment or a rental. If you never lived in the home and used it only as a flip or long-term investment, IRS rules show that any loss generally counts as a capital loss that can offset other capital gains. \nIf losses exceed gains, you can deduct up to $3,000 a year against ordinary income and carry the rest forward indefinitely. Advisors at SmartAsset and Fidelity note that this is the same rule stock and fund investors use in tax-loss harvesting.\nSee Also: ‘Big Short’ Michael Burry De-Registers His Hedge Fund, Scion Asset Management\nRental property adds both opportunity and complexity. When you hold a rental for more than a year, a loss at sale often qualifies as a Section 1231 loss, which can offset wages and other ordinary income without the $3,000 cap.\nBut depreciation, which lowers your taxable income while you own the property, also lowers your cost basis and can turn what looks like an economic loss into a taxable gain, subject in part to depreciation recapture at rates up to 25%.\nIf you convert a former home to a rental, the IRS limits any deductible loss to the lower of your adjusted basis or the property's fair market value on the date of conversion. Vacation homes you use personally also remain personal-use property, so you generally cannot deduct a loss there either.\nTax professionals at leading U.S. tax firm, EisnerAmper, say documentation makes or breaks these claims. Closing statements, improvement receipts, depreciation schedules and appraisals all help you prove basis if the IRS asks and because states don't always follow federal rules on capital losses and passive activity, planners urge sellers with large real-estate losses to consult a local CPA before they sign on the dotted line.\nRead Next: \nPhoto Courtesy: William Barton on Shutterstock.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.12","shortVersion":"4.35.12","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2584690646","isCrawlerRequest":true}