Income tax question....?

[Steve_W]

I bought a house to flip 12/2006 and I am still working on it. I did not plan to keep it this long, but I am doing all of the work by myself. I am probably going to lose 30K on this house. Would this be considered a capitol loss on my income taxes? Is there a time limit to file taxes showing a loss on a home?

[v_b]

There's no time limit. The problem will be that schedule D limits the net loss per year to $3000.  If you lost $30,000 it might be quite a while before you recover.

[maryannmccarthy200]

I am not sure but a tax advisor can advise on this before you put too much more into it.

Have you considered selling it offering seller financing to the buyer? In some states called land contract or deed for contract. You could make decent cash on the interest, in my state (Michigan), he seller can charge up to 11% interest and has to charge a minimum of 5% which over the duration of the seller financing can be quite a bit of money & it will help you recoup some losses. Of course you will usually be selling to someone without perfect credit but with a down payment, hopefully a buyer would take the purchase seriously. Something to consider.

Mary in Camden, MI

[tamhar1040]

i would say consult a local tax office