Answer: If you had used your condo as a rental unit (and declared it as such in the past), you can probably claim a loss. The calculations can be complicated, involving things like recaptured depreciation, so get guidance from a tax professional.
But if the condo was simply your own second home, then no, you cannot claim a capital loss. The IRS says it's as if you bought a second car for your own use and then sold it for less. No deduction.
How Much To Deduct
Dear Edith: What is a reasonable percentage to expect to deduct off the listing price of a home, especially when the house has been on the market for more than seven months? I'd like the answer for regular re-sales, new construction and foreclosures/bank-owned properties. -- W.W.
Answer: If all things were equal, it might be possible to find a rule for each situation you mention. But all things are not equal, and the biggest difference is in an individual seller's motivations.
Some list at a bargain price because they hate negotiating or they need a quick deal. Some list unrealistically high just to see what will happen, not caring whether they sell this year or next.
Most builders know how much they have spent on a new house and in normal times aren't inclined to bargain, except on upgrades where they have more leeway. A builder in trouble, though, may need quick cash. Or might, on the other hand, simply intend going bankrupt in the near future.
As for bank-owned properties, judging from the mail I get, those are complicated to buy, and negotiations can be frustrating even with full-price offers.
So no, I can't give you any guidelines. I can tell you one thing for sure, though: When a house has been widely exposed on the market at the same price for seven months, it is not worth what they're asking.