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Capital Gain / Depreciation Recapture Question


Hi,
Suppose I have a Capital Gain Tax loss of $11,000 and I have a Depreciation Recapture Tax of $36,000 for the year I sell an Investment Property. Is the combined tax liability for this year $36,000 - $11,000 = $25,000, or $36,000 - $3,000 = $33,000?
In other words do I have to use the $3,000 maximum loss this year an roll the remaining loss of $8,000 over to subsequent years or can I offset the Recapture Tax with the full $11,000?
Thanks, JW

Reply to
JW

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