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    Smllfry1's Avatar
    Smllfry1 Posts: 1, Reputation: 1
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    #1

    Mar 1, 2013, 08:56 PM
    Is the capital loss from a sale of a home in a trust deductible on schedule D
    My parents had a revokable trust. Both passed away in 2010. Making the trust irrevokable. They owned a home as their primary residence 7/2009 until their death in 12/2010. The home was in the trust
    We finally sold the home in 2/2012 at a loss of 50,000
    Is this loss deductible on 1041 schedule D?? I have been told 2 different things by two CPA 's. 1) it is not because it was personal use property 2) it is investment property and the loss is deductible
    Thanks for any help
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Mar 1, 2013, 09:01 PM
    It is only considered investment property if neither you nor your parents lived in it.

    Your parents lived in it, so it is PERSONAL property and the loss is NOT deductible,
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