The IRS “What Ifs” for Struggling Taxpayers – Debt Related (B-1)

The IRS “What Ifs” for Struggling Taxpayers – Debt Related (B-1)
What if I sell my home for a loss?
Losses from the sale of personal–use property, such as your home or car, are not
deductible. It is not eligible for the capital gains loss of up to $3,000 annually.
IRS Publication 523, Selling Your Home, explains the tax rules that apply when you sell
or otherwise give up ownership of a home. If you meet certain conditions, you may
exclude the first $250,000 of gain from the sale of your home from your income and
avoid paying taxes on it. The exclusion is increased to $500,000 for a married couple
filing jointly.
The publication has worksheets for calculations relating to the sale of your home. It will
show you how to: 1. Determine if you have a gain or loss on the sale of your home, 2.
Figure how much of any gain is taxable, and 3. Report the transaction correctly on your
tax return.
For more information, see  About Publication 523, Selling Your Home . 
(IRS Web Site Updated 3/28/22) (TTT 07/05/22)