How do I convert my personal home non deductible loss to a deduction?
Normally you don’t get to write off a loss on the sale of residence, as it is personal property and is well personal. The government taxes all gains and refuses to give us many personal losses. They are a bit one sided in this area. But if you are willing to forego deducting your mortgage interest and real estate taxes for three years, you can often convert your residence into a piece of rental property. Rent it for three years and then take the loss after three years which converts the loss into a deduction then. The losses on this rental property are often suspended due to the passive activity loss rules. But after you sell it completely this limitation is removed. It is not a solution made in heaven, as you must forgo the use of these deductions for several years. But at least you can ultimately get your deduction.
