I need to sell my house,but I’l incur a large loss. Can I rent it out and then take a tax loss in another year

rent large house

B/c of the crazy IRS rules, I can’t take a writeoff for the loss from selling my primary residence (lived in for about a year); but I was hoping that I can take the writeoff once I switch to a rental property for a year or two and then sell it (for a loss, or maybe the market comes back!). Thanks!
Quick Property Sale

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December 20th, 2009


2 Responses to “I need to sell my house,but I’l incur a large loss. Can I rent it out and then take a tax loss in another year”

  1. bostonianinmo Says:
    December 23rd, 2009 at 9:18 am

    That is one strategy that can work. However keep in mind that the depreciation allowed or allowable while renting it out will be recaptured when you sell and that is taxable at a higher rate than normal capital gains. At the very least it will reduce your loss.

  2. v b Says:
    December 25th, 2009 at 1:03 am

    You would have to hope the market came back. You can’t convert a personal loss into a rental loss. (Any further loss would be okay.)