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I made a poor decision bought a huge house that I don't need since relative isn't coming now and I want to resell. I put 63,000 down and paid $10,000 in closing costs I will probaly lose $30,000 if I sell it for what I paid, what are my options?
You could rent the whole house or part of the house and hang on to it hoping to regain your losses with time.
You could live in the house without your relative.
Only you can analyze the choices. Do you want to live in the big house by yourself? Can you afford it? Do you want to be a landlord? Can you make enough on rent to cover all or a substantial portion of the costs? Is the house likely to appreciate in value over the next few years? I think you have a lot of factors to look at. You will need to provide a lot more details to get any help from others on this forum.
I made a poor decision bought a huge house that I don't need since relative isn't coming now and I want to resell. I put 63,000 down and paid $10,000 in closing costs I will probaly lose $30,000 if I sell it for what I paid, what are my options?
Do you live in it currently?
If so, just take a boarder into the "excess" portion that the relative would have moved into.
Yes we live in it, my husband doesn't want to rent, house needs updates. I thought we could do the capital loss since someone said if we profited which we won't we would have a capital gain tax
house was a complete mistake and impulse and trying to see how to sell and walk away without too much of a loss
The capital gain tax doesn't come into play until you have a $500K+ gain, so while you can't claim a loss, most people won't ever claim a gain either. You can claim a loss if the property is a rental, but the place has to actually be a rental. $30K is a good chunk of change to lose, so I guess you have to ask yourself how badly do you want to move.
Yes we live in it, my husband doesn't want to rent, house needs updates. I thought we could do the capital loss since someone said if we profited which we won't we would have a capital gain tax
house was a complete mistake and impulse and trying to see how to sell and walk away without too much of a loss
Well, if selling is what you're going to do, then it's what you're going to do. But don't expect to claim capital losses on a primary residence - as others have said, the IRS doesn't allow it.
The capital gain tax doesn't come into play until you have a $500K+ gain, so while you can't claim a loss, most people won't ever claim a gain either. You can claim a loss if the property is a rental, but the place has to actually be a rental. $30K is a good chunk of change to lose, so I guess you have to ask yourself how badly do you want to move.
One caveat. You can only do that once in your life.
I made a poor decision bought a huge house that I don't need...
You still need to live somewhere... right?
Quote:
...what are my options?
Few. And none that you'll like.
No matter how you approach the issue the best basic solution is the same: Tough it out.
Don't volunteer for a loss.
Plan to remain in place for some time (+/- 5 yrs) and endure all the slings and arrows
including a few repairs and some modest (VERY modest) updating each of those years...
until the time comes again that the rest of your life justifies actually moving on.
THEN you can sell it for whatever the FMV is at that time.
Odds are there won't be a loss.
The capital gain tax doesn't come into play until you have a $500K+ gain, so while you can't claim a loss, most people won't ever claim a gain either. You can claim a loss if the property is a rental, but the place has to actually be a rental. $30K is a good chunk of change to lose, so I guess you have to ask yourself how badly do you want to move.
Quote:
Originally Posted by Tenzo
One caveat. You can only do that once in your life.
There is nothing in lycos679's post that is limited to once in a lifetime
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