No. The taxpayer cannot deduct the loss on the sale of his personal residence or any personal-use assets. A loss on the sale of a personal residence is not a deductible loss unless the loss is due to a casualty or theft under §165(c). Losses on the sale of any personal-use assets are disallowed under Reg. §1.262-1(b)(4).

A loss sustained on the sale of residential property purchased or constructed by the taxpayer for use as his personal residence and so used by him up to the time of the sale is not deductible under section 165(a) [Reg. §1.165-9(a)].