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Financial Planning / Tax Strategies


Subject:  Re: Loss on real estate sale Date:  8/21/2000  2:30 PM
Author:  EGUSC Number:  38936 of 130713

>>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?
Thanks for your help.>>

If these properties are rentals, the loss is fully deductable and can offset other income,, such as interest. The loss is claimed on schedule 4797, see the instruction to the form it should answer your questions.

If you live in a state with income tax, I might not want to use interest income to offset the loss, because the US savings bonds are state tax free and you might lose this benefit.

Good luck


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