Author Topic: Capital loss on inherited house  (Read 763 times)


  • 5 O'Clock Shadow
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Capital loss on inherited house
« on: February 08, 2017, 10:03:44 AM »
I need some real estate/tax help. My husband and his brothers inherited their father’s house in the UK in 2010 (we live in the US). The will required that the widow (not my husband’s mother) be allowed to live in the house. She died in 2016 and the house was sold soon after. Due to decline in the British pound, this was a $6000 capital loss. They had a rental agreement with the widow and she paid all expenses, but did not pay actual rent. Everything I read says that renting below market value is considered “personal use,” but legally they were required to do this, so my husband thinks it should be deductible as an "investment" property. Does the legal stuff factor into it at all? Or should we just be thankful that we don’t have to pay capital gains tax and move on? The IRS "help"-line was anything but. Thanks for any insight!!