Can I claim a loss on inherited property?

August 21, 2008

From:  Tom
Date:  08 Apr 2008

I inherited real property appraised at $900,000 at the time of my mother’s death. I recently sold the property for $500,000. Can I claim this loss?

Answer

Date:  25 Apr 2008

Hello Tom,

It depends on how the property was used after your mother’s death. If you moved into the home and used it as a personal residence, the loss is not deductible. If you rented the house for someone else to use at a fair market value rent, the loss is deductible. If you sold the house a few months after your mother’s death and nothing was done with the house in the interim, the loss probably is still a non-deductible personal loss and the accuracy of the appraisal may be questionable.

Good luck!
Mike Gray

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