You can't take a deduction on "loss" (Even if there was one, but if the property sold immediately the value is likely what you sold it for NOT what the appraisal said).I live in Virginia, however my mother, who passed away in 2007, lived in Ohio. After her passing, her house was given to my sister and me. The house was appraised at $96,000. We sold it almost immediately for (approx) $76,000. Can we write off the loss?
I am going to agree with tranq and encourage the OP to see a tax pro who is willing to research the situation.I'd agree with FlyingRon. A gain would be taxed, but everything I have read says you cannot take a "loss" on personal property (except casualty or theft losses). If you receive a 1099-S for the sale, you have to show the transaction on 1040 Schedule D, with zero in column (f).
See the 2nd paragraph of "Capital Assets Held for Personal Use" on page D-2 of schedule D instructions http://www.irs.gov/pub/irs-pdf/i1040sd.pdf
I'm going to agree with LdiJ who agrees with tranq who both disagree with Ron but with whom efflandt agrees.I am going to agree with tranq and encourage the OP to see a tax pro who is willing to research the situation.