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#2
04-05-2005, 07:36 AM
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 Re: Washing Cap Gains/Losses - quote - > > If you look at the Form 4797 where you report the
Form 4797> > disposition of the property, you will see that you report it > > in Part II (property held for one year or less). These gains > > are ordinary and wind up on Line 14 (not 13) of your 1040. > > > Net: you don't get to use your capital losses as an offset > > to this ordinary income. > Form 4797 is for property used in the course of a trade or > business though. These were not. Use Form 4797 to report gain or loss from a sale, exchange, or involuntary conversion of property used in your trade or business or that is depreciable or amortizable. -- Alan http://taxtopics.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
04-02-2005, 08:34 AM
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| Re: Washing Cap Gains/Losses - quote - > If you look at the Form 4797 where you report the
Form 4797 is for property used in the course of a trade or> disposition of the property, you will see that you report it > in Part II (property held for one year or less). These gains > are ordinary and wind up on Line 14 (not 13) of your 1040. > Net: you don't get to use your capital losses as an offset > to this ordinary income. business though. These were not. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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04-01-2005, 07:27 AM
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| Re: Washing Cap Gains/Losses johnmolinda[at]yahoo.com wrote: - quote - > My net ordinary income for 2004 from my job was $18,000. I
If you look at the Form 4797 where you report the> am carrying over $40,000 in cap losses from the NASDAQ > bubble burst. The losses were from technology stocks > (Microsoft, Yahoo, etc). In Jan 2004 I purchased two > residential homes and rented them out to tenants. I sold the > homes in Aug 2004. My net realized gain on the sale of both > homes was $50,000. I want to know if the sale of these two > homes is considered a short term capital gain (taxed at > ordinary income rate) and if so, may I use the long term cap > loss from the securities to offset the short term cap gain > on the sale of investment/rental real property? > Basically, is real property used for rental/investment > considered a cap asset and can you wash SHORT term gains > with LONG term losses? > I read the IRS web site and it seems to say real property > investments are not capital assets. disposition of the property, you will see that you report it in Part II (property held for one year or less). These gains are ordinary and wind up on Line 14 (not 13) of your 1040. Net: you don't get to use your capital losses as an offset to this ordinary income. -- Alan http://taxtopics.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
03-30-2005, 12:27 AM
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| Washing Cap Gains/Losses My net ordinary income for 2004 from my job was $18,000. I am carrying over $40,000 in cap losses from the NASDAQ bubble burst. The losses were from technology stocks (Microsoft, Yahoo, etc). In Jan 2004 I purchased two residential homes and rented them out to tenants. I sold the homes in Aug 2004. My net realized gain on the sale of both homes was $50,000. I want to know if the sale of these two homes is considered a short term capital gain (taxed at ordinary income rate) and if so, may I use the long term cap loss from the securities to offset the short term cap gain on the sale of investment/rental real property? Basically, is real property used for rental/investment considered a cap asset and can you wash SHORT term gains with LONG term losses? I read the IRS web site and it seems to say real property investments are not capital assets. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| cap, gains or losses, washing |
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