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tax deduction property loss

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Money Talk > Taxes

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CJBMD
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tax deduction property loss  Reply with quote  

I bought a house which was discovered to have mold. Remediation attempts were made, but there was alway more mold. We couldn't live in the house. We had to live elsewhere while we sued the home inspector and the seller (whom we believed had knowledge of the problem). Both filed bankruptcy.

I kept paying mortgage and utilities and insurance. We couldn't live in the house so began negotiations with the mortgage holder, ultimately settling on a lump sum payment plus monthly payments for 5 years. They declared the deal a foreclosure on our credit report.

Are my payments to the bank (lump sum and monthly ) deductible due to "loss" due to mold?
Post Thu Mar 29, 2012 6:47 am
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albertofair34
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Re: tax deduction property loss  Reply with quote  

You may deduct the loss on the sale of a house if you've converted it to investment property. That means making it a rental, for which you collect rent from a tenant and pay non-homestead property taxes.
Post Wed Jan 14, 2015 7:22 am
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losangelescpa
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Property losses may mean valuable tax breaks.Generally, you may deduct casualty and theft losses relating to your home, household items and vehicles on your federal income tax return. You may not deduct casualty and theft losses covered by insurance unless you file a timely claim for reimbursement, and you reduce the loss by the amount of any reimbursement or expected reimbursement. Property damaged or destroyed by "act of God" which includes floods, fire, earthquakes, landslides, storms, tsunamis, volcanic eruptions and windstorms.

Source: losangelescpafirm.blogspot.com
Post Tue Feb 17, 2015 11:12 am
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PoppySherlock
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You might subtract losing around the purchase of the house if you have converted it to investment property.
Post Wed Dec 06, 2017 6:48 am
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