Selling for a loss, trying to get tax deductions

[Howard L.]

Hi,

Complete newbie here.   I am considering selling my  primary residence.  I will have a very large loss if I sell (on the order of 30% below purchase price), once you consider the purchase price from 2006 (ouch!), money I put into the place over the years, money that I need to put into it to fix it up, and realtor commission.  I understand that the IRS does not treat one's primary residence as a capital investment, and thus I cannot deduct anything at all if I simply sell the house at a loss.

My other option is to put it up for rent.  I understand that the cost basis will be the value when I convert it to rental, so I still can't deduct the actual loss in price.  However, I am wondering if there is a way to deduct money spent on making it ready for rent and realtor commissions by converting it to rental and then selling it shortly thereafter.   

I would greatly appreciate it if anyone could advise on how long it would need to be put up for rent before I could sell it and take advantage of any allowable deductions.  Due to oppressive property taxes (which is why prices in my area will never likely recover), renting is a losing proposition.  But I would consider it if it saved me money by allowing deductions and selling in a relatively short time frame.

Thanks.

would like to sell my primary residence.