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Financial Planning / Tax Strategies


Subject:  Re: Loss on real estate sale Date:  8/20/2000  11:14 PM
Author:  donk23 Number:  38923 of 129674

Real estate values in my area have declined dramatically. If I sell some buildings at a loss, what can I apply that loss against come tax time? ( I was thinking if I did manage to sell the property I could cash in some US Savings bonds and apply the loss against the interest earned on the bonds...but someone told me I couldn't do this.....can I, or can't I) Any IRS publication where I can look this up?

Any gain or loss from the sale or disposition of an asset is a capital gain or loss. Capital gains and losses can be short term (held less than a year) or long term (held a year or more). Gains and losses can offset each other and if you have a net loss, that can be used to offset ordinary income, interest income, etc. but only up to a maximum of $3000 per year. If you have a net loss greater than than, you'll have to carry it forward using up to $3000 each subsequent year.

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