Houma, LA asked in Tax Law for Louisiana

Q: If I sell a condo for a $40,000.00 loss, how much of that can I write off on my taxes & over what time span?

This condo is in Baton Rouge, LA. My residency is in Houma, LA

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1 Lawyer Answer
Jon Dowat
Jon Dowat
  • Tax Law Lawyer
  • Naperville, IL

A: The amount of the "write off" depends on the nature of the Condo. Was the Condo you personal residence or was it an investment property.

If it was a personal residence you will not be able to claim the loss. If it was an investment property you will have generated an ordinary loss. One can use this loss ($40K) up to 100% of your taxable income.

For example if it was an investment property your $40,000 loss can be used to offset up to $40,000 of taxable income regardless of the nature of the income (dividends, interest, capital gains etc). If you have only $30,000 of income you can use $30,000 of the loss to offset. You will have to carry the remaining $10,000 to the following year and in some instances you can carry the loss back.

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