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I recently sold my condo. I sold it for less than I owed but took out a 30k loan to pay off the difference (traditional sale, NOT a short sale).

Are there any tax breaks or deductions I can take for this loan?

Do I take them now or after the loan is paid off?

  • I'm not sure the loan is relevant but I'd imagine the loss on the property would be deductible. – quid Mar 7 '16 at 18:18
  • Are you in the U.S.? Tax law is quite different depending on your jurisdiction. – ChrisInEdmonton Mar 7 '16 at 18:44
  • yes, the condo was in Chicago, IL – owen gerig Mar 7 '16 at 18:45
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The loan itself is not tax deductible; unless you took it as part of a mortgage, anyway, it's just a regular loan. Mortgage and Student Loan Interest deductions are special cases explicitly given tax-deductible status; other loans are not deductible (unless part of a business expense or other qualifying reason).

If this were a short sale (which you note it was not but included for completeness' sake), and some of your debt was cancelled, that may have tax implications.

You cannot take a capital loss on your personal residence, so the loss itself is not deductible.

  • 2
    -1 to US tax law – owen gerig Mar 7 '16 at 18:31

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