What is the tax treatment for losses from the sale of personal-use property?

The tax treatment for losses from the sale of personal-use property is that they are generally not deductible. This principle stems from the fact that personal-use property typically includes items such as a personal residence, cars, or other personal belongings, which do not qualify for capital loss deductions in the same way that investment or business property does. While losses from investment and business transactions can be utilized to offset gains or carried forward, personal-use losses do not provide any such tax benefits. This means that if an individual sells personal-use property for less than what they paid, they cannot claim that loss for tax purposes, impacting their overall taxable income.