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Can I use the capital loss from selling stocks to offset the capital gains from selling an investment property?
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Can I use the capital loss from selling stocks to offset the capital gains from selling an investment property?

Assuming you're accurately using the terms, yes. See the article in the FAQ on netting capital gains and losses and Publication 550 for information on reporting gains from sales of investment properties.

Phil Marti
VITA Volunteer
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Phil,
Thanks for responding. By investment property I mean a rental real estate. I have short term losses from selling stocks that are greater than the long-term capital gains form selling a rental property. Could I offset the stock losses against the rental property gains and carryover the rest of losses to future years?
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Thanks for responding. By investment property I mean a rental real estate. I have short term losses from selling stocks that are greater than the long-term capital gains form selling a rental property. Could I offset the stock losses against the rental property gains and carryover the rest of losses to future years?

I'm not sure exactly how this washes out. You report the sale of the rental property on Form 4797, which can feed Schedule D, but which also can feed the 1040 directly. I always advise professional assistance when the sale of rental property is involved. Frankly, I find the 4797 incomprehensible.

Phil Marti
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