Capital Gains on Property sales

Dec 27, 2007 2 Replies
Z

Have a question on Capital Gains from property sales. Can I offset any Capital Gains from a property sale against my current Capital Losses which I have been using at the standard rate of $3000/year/



Inotherwords, if I have a total outstanding capital losses of $50,000.00 which I was depleting by $3000.00 every year and if I sell a property which ends up in accruing gains of $50,000, can I use this gains of $50,000 on Schedule D and in essence completely zero out all of my capital losses and not pay any Capital Gains taxes?



Thanks


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P

Yes. Unless you incurred your carryover loss in 2006, by now you should have seen that the entire carryover goes onto the next year's Schedule D, where it's included in the netting process. See Schedule D.

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B

Thats a definite maybe...

If the property is considered capital gain property, than it receives capital gain/loss treatment and the carryover rules apply.

However, the property can be considered a trade or business, and then it is treated as ordinary income and accordingly, has no impact on capital gains or losses.

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-----> real address on hobokeni or hobokenx

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