- quote -

Taxable capital gains and losses ALL get netted before
figuring what you actually have to pay tax on. That
includes short term, long term, investment or residence.
This is very straight forward and prudent.

All freely provided advice guarantee correct or double your
money back

Frank S. Duke, Jr. CPA
Cincinnati, OH USA

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tinaspeilberg1[at]yahoo.com wrote:

- quote -

Not that complicated. In fact, that is the standard approach
to use when you have taxable capital gains and a carryover
capital loss. In fact, if you don't offset the loss you will
lose it.

In addition to the gain offset, up to $3,000 more of the
carryover loss can be used to offset ordinary income.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

tinaspeilberg1[at]yahoo.com wrote:

- quote -

***Losses on sale of a personal residence are not deductible
losses. Losses on the sale of a bonafide business (rental)
property could be. However, conversion of the property, at
this point, could not produce a favored result.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

tinaspeilberg1[at]yahoo.com wrote:

- quote -

Yes.

- quote -

None.

- quote -

It's not a matter of prudence. The rules require you net
your gains and losses. She should obviously offset her
recognized gain on her home with any other capital losses
she has.

--
Alan
http://taxtopics.net

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

Yes she can offset her capital gain against the losses and
then still take up to $3K loss if there is any left over from
the carryforward. This is assuming that she is married
and meets the 2 of 5 year owned/lived rule. As an
example:

Basis in house = $100K
House sold for = $800K
Gain on home sale = $700K
Excludable gain = $500K
Taxable Gain = $200K
Capital loss carryforward = $400K
Capital loss offsets the total capital gain and has $200K
left (of which $3K goes on the return and $197K is a
carryforward to next year)

--
Kathy Morgan EA
H & R Block Master Tax Advisor
Proud Mom of Sgt RT Morgan
1/156 AR BN C Company
Louisiana Army National Guard
Baghdad, Iraq

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A friend of mine is thinking of selling her home.

She has massive capital losses from stock (bad startups
that went under) ie over $400,000 brought forward from
previous years.

She is married and meets the principal residence
requirements.

The "capital gain" on the sale of her home would be over
$500,000. So any excess gain over $500,000 will be taxable.

Can she offset the capital gains losses from stock against
her capital gains (over $500,000 as explained above) from
the sale of her principal residence?

If there is any issues /info she should be aware of , pls
let me know.

If it is possible and she goes thru with the above offset,
is it a prudent approach.

With kind regards

Tina

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >