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Financial Planning / Tax Strategies


Subject:  Re: Capital loss utilization Date:  12/26/2004  4:30 PM
Author:  JanSz Number:  74939 of 127519

Taking a mortgage on my fully paid of house.
Getting a bigger house using home equity loan .
Buying summer house using mortgage.

None of the above use any of the capital losses. However, if you sell your current house, the amount of capital gains of the house in excess of your exclusion ($250,000 or $500,000) can be offset by the capital losses.

My house I could sell for 500k, 120k basis, ... can't, sensibly, get rid of my capital loss.
The house is pretty much run down now. I am thinking what to do.
Should I put about 150k in it to get it into shape that I would like it to be for the continuation of our retirement,
or, alternatively, I could sell it and buy another biger house that is in good shape and currently on the market for 730k in another (little better) part of town.
I still would have to spend some minimal money on the new house.

But all this is not helping me with capital loss utilization?
Decisions, decisions.


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