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If your home was repossessed by the bank can the difference between the original price paid and the balance of the mortgage be declared as a capital loss with IRS taxes?

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2008-01-17 22:37:54
2008-01-17 22:37:54

Don't believe so, it's a personal residence. Go to IRS.gov and look at Publication 544, it spells it out. No. This situation can only create a capital loss with business property. If it was your personal residence, you'll just have to be content with the fact that you don't have a capital gain. :)

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