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
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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