Specifically, any losses get treated as ordinary losses, as opposed to capital losses. (realestate.com)
The loss is considered a personal loss and is, therefore, ineligible for either capital loss or ordinary loss treatment. (rismedia.com)
Silver lining: by virtue of having renters in place before the local market went further south (when hospital closed), we were able to take a substantial ordinary loss on last year's tax return. (financialsamurai.com)