Help on capital gains

[arlo]

Client has large carryover loss on stocks. Wants to sell personal property used for investment (residential)
that would create a capital gain. Could this type of gain (short term or long term) be used to offset his carryover loss.

[John of PA]

Yes, the personal residence gain goes on Sch D, getting netted against the Cap Loss CFW right on Sch D.

[FEDUKE404]

Clarify please

Wording is not quite clear - are you calling his personal residence "investment property" ?

Or did he sell something else?

If it was his primary residence and some/all of the gain is excludable, I might first have to read a few paragraphs here and there before proceeding.

Otherwise, of course a large capital loss carryover can be used against a capital gain.

FE

[Jiggers]

Need more information. Was this residential rental property with depreciation?

[arlo]

here is to story

Client wants to purchase a house and then resell it thinking he can make a good return. He will not live in it.
He might have to rent it untill it is sold.

[JohnH]

Sounds like a sure-fire way to generate capital gains in this housing market.
Wonder why I didn't think of that...

[FEDUKE404]

Furthermore

Sounds like a sure-fire way to generate capital gains in this housing market.
Wonder why I didn't think of that...

Dang! I agree 100% !!

Let's see: Housing prices are obviously sky-rocketing since the economy is recovering so well (), realtor's fees x2 are totally irrelevant, and depreciation is a freebie.

Yep - he looks like an absolute tax genius.

Just curious: Was it is his barber or his car mechanic that gave the client this investment advice?

FE

[Gretel]

While it might be true that flipping a house at this time is not a good idea it doesn't mean it cannot work out. It all depends. I have a client who buys land, turns around and sells it at a gain of $15,000 to $20,000 and gives the builder a loan until a residence is constructed. Meaning interest income is included in the gain. But hey, he has about 50% return on his investment. Let's see, he has done about 10 of these within the last 18 months. ...and no, he does not pay any taxes other than SE since he also has huge legitimate losses.

[arlo]

capitlal gains

Thank for you input without the sarcasm.