Capital Gains offset against Capital Losses

Forum|Forum|3 years ago
February 25, 2023
2 replies
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Married Filing Jointly we have a Long Term Capital Loss from Stock Market. We have recently sold a Rental Condominium at a sizeable Capital Gain. That is a Long Term Gain.

Two Questions if I may:

1. Can the Gain from the sale of the Rental Property be offset against the Losses from the Stock Market?

2. Where do I do this in Turbo Tax Home and Business?

Best answer by Mike9241

the stock market loss is reported through the 1099-B and the rental sale is reported through the schedule e for the property using the asset entry worksheets. to completely get rid of all the assets included you need to indicate each was sold and allocate the gross sales price and selling expenses for each asset that should be based on their relative fair market values. Turbotax will first carry the rental sale to form 4797 page 2 and from there to page 1 and from there to schedule D line 11

Mike9241Answer

bear37Author

Thanks, Mike, but I am still stuck. I have entered the sale price of the Rental Property in Schedule E but it does not seem to be carried through to anywhere else.

Also, I still am not certain whether the gain from the sale of a rental residence can be offset against Capital losses from Stock Market.

This is a struggle.

Hal_Al

Employee

Your capital gain from the sale consists of two pieces, ordinary long term gain and depreciation recapture (section 1250 gain). Only the ordinary gain is offset by the losses from the stock market. This happens automatically on form 8949 and Schedule D. The depreciation recapture goes separately on line 19 of Schedule D