Capital Gain and Carryforward Losses Rental Property Sale

Forum|Forum|1 year ago
June 3, 2024
1 reply
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Hello everyone

I am planning to sell my Rental Property (owned for 5 years) this year. I have been carrying forward losses since I have been renting it. I plan to sell it in August 2024. It will be rented till July 2024.

Questions:
1. Can I claim expenses and depreciation for the period that it was rented i.e. Jan-July 2024?

2. If yes, will the losses during that period be added to my existing carry forward losses?

3. If yes, can I use that whole carry forward amount to offset my capital gains tax on sale of property?

For context I have 11k in carry forward losses. I am expecting another 4k in that rented period. My anticipated cap tax is 15-16k. Can I use all (11k+4k) to offset my cap gain?

Thank you in advance

Preeti

Not A Product Question

Mike9241

unless you made a grouping election for your real estate activities, upon disposal of this activity, prior and current year losses will be freed up and taken as an ordinary deduction in the year sold.