Capital loss

Any remaining net loss can be carried over and applied against gains in future years.

However, losses from the sale of personal property, including a residence, do not qualify for this treatment.

§121, a capital loss on the sale of a primary residence is generally tax-exempt.

IRC 165(c) is a stronger source that limits the loss on the sale of a personal residence.

IRC 121 is for exclusion of gain of primary residence and does not talk about loss.