I have a house I don't like, and need a loss for this year..

[Daniel Hart]

I need to find losses for this year to offset some gains. I have a house that I don't care for, and my basis is $48k. I am already will to let it go for $40k, but its hard to find a buyer in this neighborhood.

Are there any creative strategies I can use to show this house being sold at a loss for tax purposes? Installment sales? Selling to another entity I control? Owner financing/installment sales?

I need tax deductions this year ........... :)

[Account Closed]

For there to be a larger loss you are looking at ways to decrease the selling price or increase expenses.

An installment sale wouldn't help you show a greater loss.

You'll want to be very careful with selling to another entity that you have a significant ownership interest in. You might find yourself creating a situation that looks okay on paper but gets overturned in an audit because it lacked economic substance (substance over form).

The IRS would likely challenge the use of multiple entities and an ESOP.

Once upon a time you could donate a property to the fire department to burn down, take the donation and essentially have a property that was demoed and ready to rebuild.

The bottom line is that many of the choices that might have changed the outcome today have already been made. Tax planning is often a long term strategy.