Capital loss?
Q. Recently I sold an antique for 12,000 that I had bought for my personal use in 2004 at a cost of 15,000. In my 2007 tax return, can I treat the sale of the antqiue as a transaction resulting in long-term capital loss?
Asked by Mike - Fri May 11 11:19:27 2007 - - 5 Answers - 0 Comments
A. The personal use makes your loss non-deductible. From the IRS website: Personal-use property. Property held for personal use is a capital asset. Gain from a sale or exchange of that property is a capital gain. Loss from the sale or exchange of that property is not deductible. You can deduct a loss relating to personal-use property only if it results from a casualty or theft.
Answered by VATreasures - Fri May 11 11:32:22 2007
Q. Recently I sold an antique for 12,000 that I had bought for my personal use in 2004 at a cost of 15,000. In my 2007 tax return, can I treat the sale of the antqiue as a transaction resulting in long-term capital loss?
Asked by Mike - Fri May 11 11:19:27 2007 - - 5 Answers - 0 Comments
A. The personal use makes your loss non-deductible. From the IRS website: Personal-use property. Property held for personal use is a capital asset. Gain from a sale or exchange of that property is a capital gain. Loss from the sale or exchange of that property is not deductible. You can deduct a loss relating to personal-use property only if it results from a casualty or theft.
Answered by VATreasures - Fri May 11 11:32:22 2007
How many years can a long term capital loss be applied to taxes?
Q. I lost over $48,000.00 in long term capital losses in 2009. I can only claim $3000.00 a year on my income taxes. How many years can I claim $3000.00 in losses on my taxes? I need to make stock sale decisions that have a capital gain to offset this large loss.
Asked by meow0911 - Sun Mar 21 18:44:58 2010 - - 7 Answers - 1 Comments
A. The $3,000 limit applies only to offsets against other income. Against capital gains there is no dollar limit. When using the $3k per year you can use it as many years as you have a loss to carry forward; there is no limit.
Answered by Bostonian In MO - Sun Mar 21 18:54:45 2010
Q. I lost over $48,000.00 in long term capital losses in 2009. I can only claim $3000.00 a year on my income taxes. How many years can I claim $3000.00 in losses on my taxes? I need to make stock sale decisions that have a capital gain to offset this large loss.
Asked by meow0911 - Sun Mar 21 18:44:58 2010 - - 7 Answers - 1 Comments
A. The $3,000 limit applies only to offsets against other income. Against capital gains there is no dollar limit. When using the $3k per year you can use it as many years as you have a loss to carry forward; there is no limit.
Answered by Bostonian In MO - Sun Mar 21 18:54:45 2010
I didn't accurately fill out my capital loss carryover for the last 8 years. How do I correct this?
Q. I trade stock options (very poorly) and have had a loss as a result for alot of years. I've claimed the allowable loss, but haven't been keeping up with the capital loss carryover worksheet very well. Can I go back to correct these so when I show a gain I can claim against this accumulation of losses? If so, how many years can I correct?
Asked by tom p - Sat Feb 16 10:51:30 2008 - - 1 Answers - 0 Comments
A. You can go back as far as you want to correct the error, but if you are due a refund, you will only get refunds for tax years 2005 and later (assuming you correct the error before April 15.) There is a three year limit to receiving refunds for amended returns.
Answered by Richard M - Sat Feb 16 18:41:22 2008
Q. I trade stock options (very poorly) and have had a loss as a result for alot of years. I've claimed the allowable loss, but haven't been keeping up with the capital loss carryover worksheet very well. Can I go back to correct these so when I show a gain I can claim against this accumulation of losses? If so, how many years can I correct?
Asked by tom p - Sat Feb 16 10:51:30 2008 - - 1 Answers - 0 Comments
A. You can go back as far as you want to correct the error, but if you are due a refund, you will only get refunds for tax years 2005 and later (assuming you correct the error before April 15.) There is a three year limit to receiving refunds for amended returns.
Answered by Richard M - Sat Feb 16 18:41:22 2008
How best to use my cumulated capital loss carryover?
Q. I have an obscene amount of capital loss carried over over the years, which will probably take my whole life time to offset with any future capital gains, and yet every year I still pay taxes on my interest incomes. Is there anything I can do better?
Asked by fifty2weekhi - Sun Mar 25 22:56:24 2007 - - 4 Answers - 1 Comments
A. Not really. Just take the $3,000 every year against other income -- that's mandatory by the way -- and hope for a CG windfall someday to use the balance against.
Answered by Bostonian In MO - Sun Mar 25 23:09:00 2007
Q. I have an obscene amount of capital loss carried over over the years, which will probably take my whole life time to offset with any future capital gains, and yet every year I still pay taxes on my interest incomes. Is there anything I can do better?
Asked by fifty2weekhi - Sun Mar 25 22:56:24 2007 - - 4 Answers - 1 Comments
A. Not really. Just take the $3,000 every year against other income -- that's mandatory by the way -- and hope for a CG windfall someday to use the balance against.
Answered by Bostonian In MO - Sun Mar 25 23:09:00 2007
Can a parent's short-term capital loss be used to offset child's capital gain if filed on the same IRS return?
Q. My son's custodial account has ~2k of short-term gains for TY07. I'm wondering if I can use a short term capital loss from my own account to offset his gain.
Asked by robschoening - Mon Dec 10 03:00:18 2007 - - 1 Answers - 0 Comments
A. You cannot add a child's capital gain to a parent's tax return. (If you look at the form, it talks about "capital gain distributions" which is a different form of income.) If your son has $2000 of realized capital gains (as in something was sold), then it goes on HIS tax return, not yours. You will need to file a 1040 for him with a schedule D . When you say custodial account, I'm assuming a bank or college account that issues a 1099 at the end of the year, not a tax deferred account like a QTP or ESA.
Answered by the tax lady - Mon Dec 10 08:13:13 2007
Q. My son's custodial account has ~2k of short-term gains for TY07. I'm wondering if I can use a short term capital loss from my own account to offset his gain.
Asked by robschoening - Mon Dec 10 03:00:18 2007 - - 1 Answers - 0 Comments
A. You cannot add a child's capital gain to a parent's tax return. (If you look at the form, it talks about "capital gain distributions" which is a different form of income.) If your son has $2000 of realized capital gains (as in something was sold), then it goes on HIS tax return, not yours. You will need to file a 1040 for him with a schedule D . When you say custodial account, I'm assuming a bank or college account that issues a 1099 at the end of the year, not a tax deferred account like a QTP or ESA.
Answered by the tax lady - Mon Dec 10 08:13:13 2007
How do I figure my capital loss for tax purposes?
Q. We had stocks that we bought for $20,000 five years ago and recently sold them for $12,000. Does that mean we have a total capital loss of $8000? Can we then apply $3000 of the capital loss as an income tax deduction this year? And the rest is rolled over into the following years? First time selling stocks, thanks!
Asked by NUnum1 - Tue Jan 27 20:49:29 2009 - - 3 Answers - 0 Comments
A. You are correct. Report these sales on Schedule D as long term losses.
Answered by spicertax - Tue Jan 27 20:53:13 2009
Q. We had stocks that we bought for $20,000 five years ago and recently sold them for $12,000. Does that mean we have a total capital loss of $8000? Can we then apply $3000 of the capital loss as an income tax deduction this year? And the rest is rolled over into the following years? First time selling stocks, thanks!
Asked by NUnum1 - Tue Jan 27 20:49:29 2009 - - 3 Answers - 0 Comments
A. You are correct. Report these sales on Schedule D as long term losses.
Answered by spicertax - Tue Jan 27 20:53:13 2009
does a capital loss have to be applied to income?
Q. i have a capital loss, but haven't enough income to owe any tax. my tax software wants to use $3000 of my loss against income. since i'm already at zero fed tax, this seems to waste my cap loss caryforward. if i 'tell' the software i have less 'loss' it solves the problem, but enters incorrect data on the form. help?
Asked by tribalsearch - Tue Jan 31 22:56:49 2006 - - 2 Answers - 0 Comments
A. Unfortunately, the software is probably correct.
Answered by Web Maven - Wed Feb 1 01:54:11 2006
Q. i have a capital loss, but haven't enough income to owe any tax. my tax software wants to use $3000 of my loss against income. since i'm already at zero fed tax, this seems to waste my cap loss caryforward. if i 'tell' the software i have less 'loss' it solves the problem, but enters incorrect data on the form. help?
Asked by tribalsearch - Tue Jan 31 22:56:49 2006 - - 2 Answers - 0 Comments
A. Unfortunately, the software is probably correct.
Answered by Web Maven - Wed Feb 1 01:54:11 2006
I sold second home for loss, can I use that for long term capital loss and how much can i claim?
Q. I sold second home for loss, can I use that for long term capital loss and how much can i claim? $3000 is correct? It was for rental but it was never rented but my parents lived there for free.
Asked by dc4 - Sat Feb 2 13:52:24 2008 - - 1 Answers - 0 Comments
A. What kind of second home was it? Vacation home? Was it rental property? If it was not rental property, then no, you cannot deduct it.
Answered by Mark S - Sat Feb 2 15:31:42 2008
Q. I sold second home for loss, can I use that for long term capital loss and how much can i claim? $3000 is correct? It was for rental but it was never rented but my parents lived there for free.
Asked by dc4 - Sat Feb 2 13:52:24 2008 - - 1 Answers - 0 Comments
A. What kind of second home was it? Vacation home? Was it rental property? If it was not rental property, then no, you cannot deduct it.
Answered by Mark S - Sat Feb 2 15:31:42 2008
How to add capital loss from last year?
Q. I have a capital loss of 5000 dollars in 2004. I have one more loss of 8000 dollars in 2005. So my net loss is 10,000 for filing in 2005. where should I mention my loss of 2000 dollars while filing for 2005 taxes? I want to show a loss of 3000 dollars for next couple of years.
Asked by vas - Wed Apr 5 08:57:19 2006 - - 1 Answers - 0 Comments
A. You will show that on a capital loss carryover worksheet. Line 6 of your Sch. D will lead you to a worksheet on page D-6 of the instructions for the schedule. The worksheet will help you to keep track of your carryforward of your capital losses. You don't have an accountant to do your taxes???
Answered by ari - Thu Apr 13 16:02:24 2006
Q. I have a capital loss of 5000 dollars in 2004. I have one more loss of 8000 dollars in 2005. So my net loss is 10,000 for filing in 2005. where should I mention my loss of 2000 dollars while filing for 2005 taxes? I want to show a loss of 3000 dollars for next couple of years.
Asked by vas - Wed Apr 5 08:57:19 2006 - - 1 Answers - 0 Comments
A. You will show that on a capital loss carryover worksheet. Line 6 of your Sch. D will lead you to a worksheet on page D-6 of the instructions for the schedule. The worksheet will help you to keep track of your carryforward of your capital losses. You don't have an accountant to do your taxes???
Answered by ari - Thu Apr 13 16:02:24 2006
Do I need to use a capital loss carryover from 2006 if it makes me ineligible for the $300 tax rebate?
Q. Tax due without capital loss carrover is $73 and $300 rebate Tax due with capital loss carryover is $0 and since no tax paid there is no rebate.
Asked by Unexpected tax problem - Sun Apr 6 19:54:11 2008 - - 3 Answers - 0 Comments
A. I assume you are saying that you don't have the required $3000 of eligible income to be due $300 just from that. If you have the eligible income, then the carryover won't make a difference. The capital loss carryover is use it or lose it - you still have to subtract the $3000 each year even if you don't take it. But I don't know of any rule requiring you legally to report the carryover if you don't want to.
Answered by Judy - Sun Apr 6 22:55:53 2008
Q. Tax due without capital loss carrover is $73 and $300 rebate Tax due with capital loss carryover is $0 and since no tax paid there is no rebate.
Asked by Unexpected tax problem - Sun Apr 6 19:54:11 2008 - - 3 Answers - 0 Comments
A. I assume you are saying that you don't have the required $3000 of eligible income to be due $300 just from that. If you have the eligible income, then the carryover won't make a difference. The capital loss carryover is use it or lose it - you still have to subtract the $3000 each year even if you don't take it. But I don't know of any rule requiring you legally to report the carryover if you don't want to.
Answered by Judy - Sun Apr 6 22:55:53 2008
If I sell an auto for less than I owe can I take a capital loss?
Q. I take capital gains and losses in stock and debt interest paid to me so why not take it in interest I am paying on something I took a loss on. It happened to be my car is all. for tax purposes.
Asked by chris - Sun Jan 21 12:48:06 2007 - - 3 Answers - 0 Comments
A. You know ... that's a darn good question ... I'd never really thought of that so I went out and did a little research and this is what I found out. It appears like your car is not eligible for two reasons ... one a car is not an investment, it's a purchase ... like a dishwasher or a new suit. You bought it for utility need or pleasure, but not with the intent of making money on it or the knowledge that it should increase in value over time (like a stock or security). And the second provision is that a car is considered to be Personal-Use Property and personal-Use property is exempt from capital gains and losses even though it IS a capital asset. Of course this also means that if you sell your car for MORE than you paid for them you… [cont.]
Answered by Informed1 - Sun Jan 21 13:09:11 2007
Q. I take capital gains and losses in stock and debt interest paid to me so why not take it in interest I am paying on something I took a loss on. It happened to be my car is all. for tax purposes.
Asked by chris - Sun Jan 21 12:48:06 2007 - - 3 Answers - 0 Comments
A. You know ... that's a darn good question ... I'd never really thought of that so I went out and did a little research and this is what I found out. It appears like your car is not eligible for two reasons ... one a car is not an investment, it's a purchase ... like a dishwasher or a new suit. You bought it for utility need or pleasure, but not with the intent of making money on it or the knowledge that it should increase in value over time (like a stock or security). And the second provision is that a car is considered to be Personal-Use Property and personal-Use property is exempt from capital gains and losses even though it IS a capital asset. Of course this also means that if you sell your car for MORE than you paid for them you… [cont.]
Answered by Informed1 - Sun Jan 21 13:09:11 2007
If I sell my home at a loss of $20K, but make $25K on stocks, can I claim the $20K as long-term capital loss?
Q. I have been reading about long-term capital loss, but am confused. How is this figured on Schedule D?
Asked by militarytraveler - Wed Jun 11 20:05:06 2008 - - 4 Answers - 0 Comments
A. The loss on your home is not a deductible capital loss. You would claim the $25K gain on stocks on Schedule D and pay capital gains taxes (ordinary rate for one year or less, a max of 15% for more than one year holding period).
Answered by ninasgramma - Wed Jun 11 21:10:04 2008
Q. I have been reading about long-term capital loss, but am confused. How is this figured on Schedule D?
Asked by militarytraveler - Wed Jun 11 20:05:06 2008 - - 4 Answers - 0 Comments
A. The loss on your home is not a deductible capital loss. You would claim the $25K gain on stocks on Schedule D and pay capital gains taxes (ordinary rate for one year or less, a max of 15% for more than one year holding period).
Answered by ninasgramma - Wed Jun 11 21:10:04 2008
Can my wife take a $1500 capital loss she made to someone for their biz that they ended up closing?
Q. My wife loaned a friend, who was a biz owner, some money last year. That person went out of biz and did not pay my wife back. Since we are filing married filing separate, can she take the $1500 capital loss on Schedule D and would that be the right form to use? Under "type" I see "worthless" as a choice and I assume the date acquired would be when the loan was made and the date sold would be when they went out of business.
Asked by Midwest Gregg - Fri Mar 20 12:30:05 2009 - - 3 Answers - 0 Comments
A. maybe-check at www.IRS.gov and read the instructions for schedule D, and the 1040 form. you might also to issue a 1099-C as "forgiven debt" to that person so that person has to claim income for it in order for you to be able to deduct it - you would just put your wife's name and SS# as the payor
Answered by Doctor Deth - Fri Mar 20 13:17:57 2009
Q. My wife loaned a friend, who was a biz owner, some money last year. That person went out of biz and did not pay my wife back. Since we are filing married filing separate, can she take the $1500 capital loss on Schedule D and would that be the right form to use? Under "type" I see "worthless" as a choice and I assume the date acquired would be when the loan was made and the date sold would be when they went out of business.
Asked by Midwest Gregg - Fri Mar 20 12:30:05 2009 - - 3 Answers - 0 Comments
A. maybe-check at www.IRS.gov and read the instructions for schedule D, and the 1040 form. you might also to issue a 1099-C as "forgiven debt" to that person so that person has to claim income for it in order for you to be able to deduct it - you would just put your wife's name and SS# as the payor
Answered by Doctor Deth - Fri Mar 20 13:17:57 2009
Can I use a long term capital loss in the stock market from 4 years ago?
Q. Four years ago I had a major long term capital loss in the stock market. This year it looks like I'll have a major capital gain in the stock market. Can I use the loss from four years ago to off set this gain?
Asked by Tom - Thu Jun 10 07:40:15 2010 - - 4 Answers - 0 Comments
A. finance act 2005 has amended section 43(5). this implies that income or loss transaction carried out in a recognised stock exchange is not taxed as speculative incom or loss. thus loss can be set off against any income during the year. such loss can be carried forward for a period of 8 assessment years.
Answered by bhanwar b - Thu Jun 10 08:02:17 2010
Q. Four years ago I had a major long term capital loss in the stock market. This year it looks like I'll have a major capital gain in the stock market. Can I use the loss from four years ago to off set this gain?
Asked by Tom - Thu Jun 10 07:40:15 2010 - - 4 Answers - 0 Comments
A. finance act 2005 has amended section 43(5). this implies that income or loss transaction carried out in a recognised stock exchange is not taxed as speculative incom or loss. thus loss can be set off against any income during the year. such loss can be carried forward for a period of 8 assessment years.
Answered by bhanwar b - Thu Jun 10 08:02:17 2010
I have $90,000 in capital loss carryover from years ago. Why can I only get $3000 off my tax per year?
Q. I'm 56 years old and can write off $3000 per year. It will take 30 more years to use up my capital loss.
Asked by Brian W - Thu Jan 24 16:14:32 2008 - - 3 Answers - 0 Comments
A. It's an IRS rule... There was a politician trying to change the rule, but I can't remember who it was, and an internet search comes up with nothing. It's the only cap that doesn't get adjusted... Everything else, personal deduction, IRA contribution limits, child tax credits, etc. all increase due to "infation adjustments"... But the capital loss limit has never been increased.
Answered by MikeeyMan - Thu Jan 24 16:32:30 2008
Q. I'm 56 years old and can write off $3000 per year. It will take 30 more years to use up my capital loss.
Asked by Brian W - Thu Jan 24 16:14:32 2008 - - 3 Answers - 0 Comments
A. It's an IRS rule... There was a politician trying to change the rule, but I can't remember who it was, and an internet search comes up with nothing. It's the only cap that doesn't get adjusted... Everything else, personal deduction, IRA contribution limits, child tax credits, etc. all increase due to "infation adjustments"... But the capital loss limit has never been increased.
Answered by MikeeyMan - Thu Jan 24 16:32:30 2008
Can I offset a shortterm capital gain of OVER $3K, with a capital loss carryover from previous years?
Q. I have a shortterm capital loss carryover of about $25K from earlier years of investing in stocks. I've been deducting the standard $3K yearly from ordinary income as I don't play the market much any more. If I were to play the market again and show a shortterm capital gain of $25K this year, wouldn't I be able to offset the ENTIRE amount and hold onto the entire gain?? I'm pretty sure I can, but my friend says I can't, and even his CPA supports him. Who is correct??? Shouldn't he get a new CPA?? :)
Asked by male29california - Sat Mar 17 14:31:00 2007 - - 2 Answers - 0 Comments
A. To answer your final question, yes he should. In your scenario, you would have gains of $25K in the year and losses of $25K (because losses carried forward are treated as if they had arisen in the year they were carried forward to). Net result is no capital gain. In fact if you made $20,000 gain (short term) you could use $20,000 of the losses to absorb that, use a further $3,000 to create a deduction from your other income and carry forward $2,000.
Answered by skip - Sat Mar 17 15:19:45 2007
Q. I have a shortterm capital loss carryover of about $25K from earlier years of investing in stocks. I've been deducting the standard $3K yearly from ordinary income as I don't play the market much any more. If I were to play the market again and show a shortterm capital gain of $25K this year, wouldn't I be able to offset the ENTIRE amount and hold onto the entire gain?? I'm pretty sure I can, but my friend says I can't, and even his CPA supports him. Who is correct??? Shouldn't he get a new CPA?? :)
Asked by male29california - Sat Mar 17 14:31:00 2007 - - 2 Answers - 0 Comments
A. To answer your final question, yes he should. In your scenario, you would have gains of $25K in the year and losses of $25K (because losses carried forward are treated as if they had arisen in the year they were carried forward to). Net result is no capital gain. In fact if you made $20,000 gain (short term) you could use $20,000 of the losses to absorb that, use a further $3,000 to create a deduction from your other income and carry forward $2,000.
Answered by skip - Sat Mar 17 15:19:45 2007
Can I offset a realized capital loss against mutual fund capital gain distributions?
Q. This is the year for losses, it appears. But some of my mutual funds are still paying capital gain and income distributions. Can I offset the losses?
Asked by Dumb shopper - Sat Jul 12 15:18:46 2008 - - 2 Answers - 0 Comments
A. yes and you can carry any loss in excess of the gain to you 1040 up to $3000. Losses over that amount must be carried to the following year.
Answered by Charlie & Angie G - Sat Jul 12 15:32:25 2008
Q. This is the year for losses, it appears. But some of my mutual funds are still paying capital gain and income distributions. Can I offset the losses?
Asked by Dumb shopper - Sat Jul 12 15:18:46 2008 - - 2 Answers - 0 Comments
A. yes and you can carry any loss in excess of the gain to you 1040 up to $3000. Losses over that amount must be carried to the following year.
Answered by Charlie & Angie G - Sat Jul 12 15:32:25 2008
Can I put Capital Loss in Forex trading on Tax Return?
Q. So this year I tried www.fxcm.com Forex trading and lost $1300. I was wondering if I can somehow put this on my tax return as capital loss and where I would put such an item.
Asked by nycxwes - Thu Jan 3 18:38:51 2008 - - 5 Answers - 0 Comments
A. You can put on your tax return, but only to offset the capital gains on another forex/securities related trade.
Answered by GW - Thu Jan 3 22:26:44 2008
Q. So this year I tried www.fxcm.com Forex trading and lost $1300. I was wondering if I can somehow put this on my tax return as capital loss and where I would put such an item.
Asked by nycxwes - Thu Jan 3 18:38:51 2008 - - 5 Answers - 0 Comments
A. You can put on your tax return, but only to offset the capital gains on another forex/securities related trade.
Answered by GW - Thu Jan 3 22:26:44 2008
how to calculate the the "Long-Term capital loss carryover" from the schedule D?
Q. In the line 14 of the Schedule.D I have a Long-term capital loss carry over -3,844 in 2003 tax form, and on the 2006, I have a Long-term capital loss carryover of -351. I want to know how they calculate the number?
Asked by Reece Mak - Sat Mar 10 23:51:16 2007 - - 3 Answers - 0 Comments
A. You are doing your taxes using software and some years you see the long-term loss carryover. I hope you are keeping the same software and that the software carries the loss forward for you. If it hasn't, you can amend your returns starting with 2003 since you may be due a refund. When your capital losses are greater than your capital gains, you are allowed to deduct $3,000 of your losses each year. Leftover losses are "carried forward" to succeeding years until they are used up. A loss carried forward offsets gains for the next year, etc. So losses can be comingled together for several years. IRS Publication 550 has more details and worksheets, showing the relationship between short-term and long-term gains and losses. Make sure… [cont.]
Answered by ninasgramma - Sun Mar 11 09:27:04 2007
Q. In the line 14 of the Schedule.D I have a Long-term capital loss carry over -3,844 in 2003 tax form, and on the 2006, I have a Long-term capital loss carryover of -351. I want to know how they calculate the number?
Asked by Reece Mak - Sat Mar 10 23:51:16 2007 - - 3 Answers - 0 Comments
A. You are doing your taxes using software and some years you see the long-term loss carryover. I hope you are keeping the same software and that the software carries the loss forward for you. If it hasn't, you can amend your returns starting with 2003 since you may be due a refund. When your capital losses are greater than your capital gains, you are allowed to deduct $3,000 of your losses each year. Leftover losses are "carried forward" to succeeding years until they are used up. A loss carried forward offsets gains for the next year, etc. So losses can be comingled together for several years. IRS Publication 550 has more details and worksheets, showing the relationship between short-term and long-term gains and losses. Make sure… [cont.]
Answered by ninasgramma - Sun Mar 11 09:27:04 2007
Are real estate taxes on vacant land deductible, and if I sell the land for a loss, is it a capital loss?
Q. I purchased vacant land 2 years ago and plan to sell it within the next few months. I haven't used it for any purpose the last 2 years, so I'm assuming it's considered investment property. Originally I had planned to build on the land, but now that I'm moving to a different city I need to sell the land. I have 2 questions: 1. Are real estate taxes deductible on investment property? If so, are they reported in the same place as the real estate taxes I report for my primary residence? 2. I'll probably break even on the property or even sell at a loss. Would this be considered a capital loss (if I consider it to be investment property)? Thank you!
Asked by kak - Sun Jan 28 21:04:58 2007 - - 2 Answers - 0 Comments
A. 1. Real property taxes are always reported on Schedule A, in the same section that you report your property taxes on your principal residence. The only time that it would not be reported on Schedule A is if the property was held as rental property. In that situation, it would be reported on Schedule E along with your rental income and expenses. 2. If the property was held as an investment, a loss on the sale would be considered a capital loss. Whether it is short term or long term would be dependent on the holding period. Capital losses can only be used to offset capital gains, plus an extra $3,000 of loss per year (you can only deduct a net capital loss of $3,000 per year). Any excess loss would be carried over to future years… [cont.]
Answered by jseah114 - Mon Jan 29 01:26:39 2007
Q. I purchased vacant land 2 years ago and plan to sell it within the next few months. I haven't used it for any purpose the last 2 years, so I'm assuming it's considered investment property. Originally I had planned to build on the land, but now that I'm moving to a different city I need to sell the land. I have 2 questions: 1. Are real estate taxes deductible on investment property? If so, are they reported in the same place as the real estate taxes I report for my primary residence? 2. I'll probably break even on the property or even sell at a loss. Would this be considered a capital loss (if I consider it to be investment property)? Thank you!
Asked by kak - Sun Jan 28 21:04:58 2007 - - 2 Answers - 0 Comments
A. 1. Real property taxes are always reported on Schedule A, in the same section that you report your property taxes on your principal residence. The only time that it would not be reported on Schedule A is if the property was held as rental property. In that situation, it would be reported on Schedule E along with your rental income and expenses. 2. If the property was held as an investment, a loss on the sale would be considered a capital loss. Whether it is short term or long term would be dependent on the holding period. Capital losses can only be used to offset capital gains, plus an extra $3,000 of loss per year (you can only deduct a net capital loss of $3,000 per year). Any excess loss would be carried over to future years… [cont.]
Answered by jseah114 - Mon Jan 29 01:26:39 2007
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hu, 17 Jun 2010 11:08:24 GM
Let's see how you can create a . loss. of . capital. to invest in shares of trust, and how this risk is less. One way you canexperienced a total . loss. of . capital. invested in confidence as a borrower fails to pay its obligations to you, ...
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