Can sellers deduct $49,292 loss on home sale?
By Robert J. Bruss, Attorney At Law, Tribune Media Services Don and Margaret owned a five-acre parcel, consisting of their home, a work area used by Don in his construction business, and a mobile home. They decided to sell this property so they could move to Missouri for semi-retirement. They planned to buy a campground there. Their property was listed for sale at $650,000 with a local realty agent. Several months later, they were contacted by the owner of a nearby brand-new luxury house on a one-acre lot, which was listed for sale at $529,000. He proposed trading it for the five-acre parcel. The parties agreed to exchange their properties for $460,000 each. Don and Margaret received $150,000 cash, unsecured notes of $288,000, $6,740 mortgage relief, and paid a $15,260 sales commission to their agent. They put a $300,000 mortgage on the luxury home they acquired and also bought a Missouri campground for $132,500. They immediately listed the luxury house for sale at $525,000. After it w
