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Hypothetical question about losing money from not selling house when you want to.?
So I have a rental and me and my wife have been tossing around the idea of selling. But due to both state and federal pretty much saying I can't because i can't evict. When the time comes that i can evict to sell, but the market goes down. Am i able to claim losses on taxes to make back the lost money? Today its about 420k but at this moment I cant do anything until Dec 27th. Lets say my house is only worth 385k at that time. Thats me losing 35k due to not being able to sell when I want to.
19 Answers
- Anonymous1 month ago
You can sell a property with a sitting tenant in it.
Also; you can give notice to end a tenancy without evicting.
- Christin KLv 71 month ago
Nope--that's not a deduction. It's not a capital loss, either. You sell when you sell--it has nothing to do with whether or not you might have sold it at any other time for a higher price. That's what you risk when you own any property--that you will maybe not be able to get rid of it if you have to at the price you want to sell it for. It's not anyone's fault. It's how the market is.
And anyone can increase the value of a home they own if they make improvements and upgrades. So your argument doesn't even really hold water. You don't know what your house will sell for when and if it does. You can't predict it, and you can't COUNT on any one figure.
- sunshine_melLv 71 month ago
You can sell a property with a sitting tenant in it.
Also; you can give notice to end a tenancy without evicting.
- curtisports2Lv 71 month ago
No. There are no hypothetical gains or losses.
And you don't have to evict to sell. If you have a lease with a tenant, the buyer of your property is, by law, required to honor that lease until it expires. Now, if you can't find a buyer willing to buy the property with a tenant in it, that's a different matter entirely. But again, there are no hypothetical gains or losses. Only actual ones. You have no loss UNTIL you realize one.
- Anonymous1 month ago
It won't hurt to TRY to sell, you can be firm on a minimum price and just refuse if you only get low ball offers because of the tenant. Laws vary, I have heard of claims in some states there is a complete moratorium on evictions. So CA does not apply if you are in not in CA. No, a landlord CANNOT evict a tenant, only a COURT can evict a tenant on the landlord's behalf.
- SlumlordLv 71 month ago
I honestly can't tell if this is a serious question or some sort of kinda weird parody, but no you can't take a write off for money you might have made if you'd sold sooner.
- Glenn SLv 71 month ago
Trying to sell a Single Family Home rental property with a tenant still in the property is really stupid because you are severely limiting the market and will probably make less on the sale.
There are the bottom feeder buyers that advertise that they will buy your rental no matter the condition, with or without tenants, no commissions and will pay all the closing costs. The only problem is they want to pay about 20% under real market value. And a very high percentage of these these offers fall out of escrow at the very end. I get at least two of these solicitations a week in the mail or by phone.
While in most cases evictions today are not possible, however in my state, California, a landlord is allowed to evict a tenant because the landlord is removing the property from the rental market even in this covid era.
Meaning that if you are either going to sell the property, you move into the property, or make repairs that requires the tenant to move, you can evict the renter with a 60 Day Notice.
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Again Hutch sticks his foot in his mouth by giving his usual totally wrong advise. As I said above, you as a landlord are allowed to evict a tenant if you are going to take the property off the rental market with the proper notice......this is true even during the covid eviction moratorium.
Source(s): Calif. Section 1946.2 (b)(2)(B). - Elaine MLv 71 month ago
Dude, I was renting when the building was sold, all we did was send the rent to a new address.
- AmyLv 71 month ago
Your house with a squatter not paying rent is currently worth $0.
Okay, that's an exaggeration. It's worth a time-discounted amount of what rent you will be able to collect after eviction. Maybe $375K if it will return $385K in December.
No, you aren't able to claim losses against a hypothetical value that your house could have sold for in an alternate universe. Your taxable gain or loss is the difference between your actual purchase price and your actual sale price.
- babyboomer1001Lv 71 month ago
You will never get back on taxes what you lose selling in a buyer's market. Why can't you sell it with the tenant in it? An investor might want it and want the tenant. Also, most states require that the tenant has to be out 30 days after notification, which should be given at least 30 days before closing, so, there's no reason why you can't sell now.