Can a loss on my home sale offset gains in my stock portfolio?


Q. I am planning to become a Florida resident and will sell my New Jersey home in the next few years. I am expecting to have a loss on the sale. If I am still a New Jersey resident when I sell the home, can I offset the loss against gains in my stock portfolio on my tax return?
— Seller

A. We’re sorry to hear you had a loss on your home sale.

Sorry, but no.

A loss on the sale of your personal residence is a non-deductible tax loss since the transaction is personal in nature, said Gail Rosen, a Martinsville-based certified public accountant.

She said losses are only allowed on the sale of property used for business or investment reasons.

“Even though the loss is non-deductible, you will have to report this transaction on your tax return if you receive Form 1099-S reporting the sale,” she said. “If you receive a 1099-S, the sales price and cost basis must be reported on Form 8949. You would then enter the amount of the non-deductible loss as a positive number in column `G’ on this form.”

Consider working with a tax preparer if you’re unsure about how to report the sale.

Good luck.

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This story was originally published on July 7, 2022. presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.