Capital Loss Offset Home Sale Gains

Forum|Forum|3 years ago
March 17, 2023
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I sold a home with substantial capital gains (long term). This was a primary residence and all allowances accounted for. This is reported on a 1099-S.

I sold a number of stocks at a loss reported on a 1099-B. Using TurboTax Premier it appears to only apply a $3000 offset to income tax rather than deduct the full loss against the gain of the house. Is there a way to force TurboTax Premier (Desktop) to do this? Thank you.

Vanessa A

You shouldn't have to force it to do anything. When I walk through and enter the sale of the home and then enter a short term stock loss for a greater amount, it completely offsets the gain on the sale of the home and then gives a $3,000 offset for ordinary income.

Are you seeing this $-3,000 on line 7? If so, this is the offset for your ordinary income not the amount that is going against the home sale.

Look at Schedule D line 7, 15 and 17. You will see your stock losses netted again your home sale gains on line 16. If this is a negative number, you will only see $3,000 on line 7 of your 1040. If it was not, you would see a gain on line 7 instead of negative $3,000.

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