Investor Friendly Agents
Make It Easy To Be Found
Click Here Now!

--------------------------
Hard Money Lenders
You Need To Be Listed
Click Here Now!


Welcome, Guest. Please login or register.
Did you miss your activation email?
October 20, 2020, 06:15:38 pm
Home Help Search Calendar Login Register
Free Monthly Update
Name:
Email:
Investor Friendly Agents
Make It Easy To Be Found
Click Here Now!

--------------------------
Hard Money Lenders
You Need To Be Listed
Click Here Now!


Welcome, Guest. Please login or register.
Did you miss your activation email?
October 20, 2020, 06:15:38 pm
Home Help Search Calendar Login Register
Free Monthly Update
Name:
Email:
Click Here to Register for the Discussion Forums

Author Topic: How to offset capital gain with passive loss.  (Read 264 times)

Offline Jinesh

  • Member
  • *
  • Posts: 1
How to offset capital gain with passive loss.
« on: October 13, 2020, 05:33:35 pm »
In February 2015, I sold a rental property and made a capital gain of 18.2 K (Sale price - Initial purchase price + depreciation).

During the 4 years I held that property, I incurred an accumulated passive loss of 12.3 K (including 6K of depreciation) which was carried over each year (I have no other passive income).

Since I meet the 3 criteria of a qualifying disposition, I believe that I could apply my accumulated passive activity loss against the gain from the sale of my property. However, I do not understand how that will translate into my tax return. I filled form 4797, form 8582 as well as Schedule E and D. Where do the PALs offset the capital gain? I think I missed a step here.

Any help????
« Last Edit: October 14, 2020, 09:38:41 am by Mdhaas »

Offline heartlandbuyshouses

  • Member
  • ***
  • Posts: 259
    • My Seller Site
Re: How to offset capital gain with passive loss.
« Reply #1 on: October 13, 2020, 11:48:22 pm »
Passive losses on the property that you still have are not "unsuspended" until you dispose of the property. You can use these losses to offset other passive income (i.e. Schedule E income, perhaps some Partnership income), but you cannot use it to offset the capital gain.
Don Wede
Heartland Funding Inc.
www.heartlandbuyshouses.com

 




SMF 2.0.15 | SMF © 2017, Simple Machines