By Matthew A. Quick Although a gain on the sale of a personal residence over the exclusion ($250,000 for an individual; $500,000 for a couple) is taxed as a capital gain, a deduction cannot be taken if there is a loss on the sale of a personal residence. However, losses on investment property (a rental home) may be deducted.
For more on taxes on the sale of a primary residence/main home, click here.