Quote:
Originally Posted by Reggie28
“If the house is sold for more than it was worth upon taking ownership because of market changes, the rise in value would be considered a capital gain. If you did have an increase in value you would be expected to recognize the capital gain. Which means 50% of that increase in value would go into your income to be taxed.”
If you sold the home for less than the initial value would you be able to claim a loss? Even if the home was worth 2 million and you sold it for two million, the realtors, lawyers and other professionals are taking a slice, so you would still have a loss to declare. Or am I out to lunch and you pay capital gains on any appreciation, but if you have a loss, well too bad for you.
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Cap losses can only be applied against cap gains. Maybe different rules for RE but I doubt it.
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