Originally Posted by megacorp-firee
I don't think that you can take a capital loss on a house that was NOT a business property (i.e. rental unit).
For some reason I thought the OP had inherited the house and his brothers were living in it; on a re-read, they all inherited it.
Since some of the owners lived in it as a main home, then they cant take a loss.
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.