A loss on the sale of a taxpayer's personal residence is deductible if the taxpayer owned and lived in the home for two of five years.

Question

Quizplus · Accepted Answer

A loss on the sale of a personal residence is generally not deductible. However, if the residence was used for personal and not rental purposes and the taxpayer owned and lived in the home for two of the five years preceding the sale, up to $250,000 ($500,000 for married filing jointly) of the loss may be excluded from income.

A Loss on the Sale of a Taxpayer's Personal Residence