I have a large loss from sale of home my wife was gifted from her mother and a small gain from sale of a home that my wife inherited from her grandmother. In filing out form 8949 I needed to know if I play the loss against the gain for a Loss and then transfer it to sch D as a -0- because I was quite sure you can not deduct loss on personal use property. I was confused when having to add up columns. thanks Larry

as you said, you can not deduct a loss from the sale or other disposition of property held for personal use , except in the case of casualty or theft;however, gains on these items are taxable unless otherwise excluded, such as under the home sale rules that allow you to exclude up to $250k on the sale of your primary home.