Taxpayer purchased property never rented or lived in property.
Held for two years and then sold property at loss. Does transaction need to be reported on return.
If so which form and can Loss be deducted?
What was the original purpose for buying the property?
Originally to use as a rental property. But things changed.
No income was ever generated.
Yes it needs to be reported. There will be a 1099-S with the sale price. IRS will come calling if it is not on the return.
So what was going on with this property for two years?
Tried to rent it?
Renovations?
Sitting empty and getting decrepit?
