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property value keeps dropping, tax deductible?

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Money Talk > Taxes

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ukrkoz
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property value keeps dropping, tax deductible?  Reply with quote  

OK, here's the skinny:

we bought property in 2005 for $440K

property value happily went up to $569K, prolly mostly to upgrades we did, then it started dropping down.

per last county eval, we are $90K loss on property value, than what we bought it for. property was eval-d at $$354K a month ago.

is such loss tax deductible?

TH-U

PS. we, also, had $396K mortgage back in 2005, at purchase. we have only $45K left as of this month. basically, we paid $340K in 7 yrs
Post Sun Sep 23, 2012 1:01 am
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coaster
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Not on your primary residence.

On the flipside, a gain isn't taxed as income, either (subject to certain qualifiers).

And in general, any kind of deductible loss can't be deducted until it's realized anyway (ie the asset is sold, money is collected, ownership changes hands).

It's good to know you've got your thinking cap on though...don't cast it aside because you were wrong once; every dollar counts these days when you don't want to pay any more tax than you're legally obligated to. Smile

~Tim~
Post Sun Sep 23, 2012 6:45 am
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ukrkoz
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Cash: $ 9.30

Posts: 43
Joined: 04 Nov 2010
Location: seattle
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Thank you.

Actually, was my wife that got her thinking ticking on this. My mind is set on - it'll go back up anyway, give it few years. We'll kill that mortgage in a few, that will make life better.
Post Sun Sep 23, 2012 2:27 pm
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