Discussion:Taxable disposition of rental property

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Discussion Forum Index --> Basic Tax Questions --> Taxable disposition of rental property

Discussion Forum Index --> Tax Questions --> Taxable disposition of rental property

Kellyf (talk|edits) said:

10 April 2010
My client purchased a home in May 2008 which was originally intended for personal use. They decided to use it as a rental property instead and never occupied the property. The home was vacant for several months, then rented from Dec 2008 until June 2009. They sold the property in August 2009 at a loss of $80k. Since this was a fully taxable disposition, are they allowed to take the entire loss on the sale (Form 4797) as well as the rental loss of 24K (schedule E).

Harry Boscoe (talk|edits) said:

10 April 2010
Yes, that's allowed. Until somebody starts with the "it's more an investment than it is a rental and there's court cases that require bifurcation on facts similar to these."

Those other threads are incorporated here by reference.

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