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Subject:  Offset rental house loss against capital gains? Date:  11/21/2012  11:00 PM
Author:  RBMunkin Number:  116956 of 128754

I'm doing some advance research and calculations for 2012 so I can decide about possibly offsetting some capital gains from stocks against a loss on the sale of a rental house.

We sold our rental house this year at a loss taking into account the cost of the house/land, improvements, and cost of selling it.

Can this loss offset capital gains from stocks? I'm thinking not because it looks like the sale of the house goes on line 14 of the 1040 form and capital gains from stock goes on line 13. (I'm looking at the 2011 form 1040 as an example).

The loss on the sale of the house will more than offset the gain on stocks, but it looks like I can use the loss on the house against ordinary income and thus it would still be advantageous to come up with a stock loss to offset the stock gain.

Am I figuring correctly?

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