Question

Inherited House Sale Loss and Personal Property Sale Accounting

Forum|Forum|3 years ago
November 16, 2022
2 replies
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Year 2020 we sold a deceased parent house for loss. Year 2020 and 2021 the loss was being released on my taxes at $3k each year. Year 2022 we sold personal property (not inherited) and taxable income from the sale will be a gain. Can I release the remaining balance from the inherited parent house loss in year 2022 to help offset this property sale gain? If so, how do I report it on turbo tax so it takes the full loss and not the $3k annually? Also, will selling some underperforming stocks this year help offset the personal property gain?

Thanks.

KeithS-2020

Hi, @DL62.

You are allowed to claim $3,000 of capital losses against ordinary income. If you have a capital gain, the losses will offset that first. TurboTax will do this automatically.

Yes, any realized losses you have (or can create) will offset capital gains.

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OmM1

Hello DL62

Thank You for reaching out.

Before you are taxed on your current year net capital gains, you are allowed to offset any carried forward losses to the extent of net gains; if you are still left with capital losses, you can claim another 3K capital loss against your other income as you have done in previous years.

If you have been using TurboTax to do your taxes, the program will automatically offset carried forward losses to the full allowed extent and further allow you 3K deduction, if any losses are left. If your all losses are wiped out then you will end up paying capital gains tax on the remaining capital gains.

Hope this answers your question,

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