Replies to post #75 on Tax Questions

[PDC ™]

really I find this very odd. Hopefully my esteemed other moderator migth know but i could swear that this is not correct.

"She says dollar for dollar. Not the normal $3,000 dollar limit. Originally she told us we'd have to pay somewhere between 24-28,000 in capital gains last spring when we sold the house."

[PDC ™]

just to confirm .. you lived in the house for under 2 yrs?

[nitetrak]

Just a thought MrBankRoll...Can't you show any Capital Improvement Expenses as a deduction to offset Capital Gains Taxes? I have improved on my house for over 20 years and can show upwards of 150K of improvements; if I should sell. As far as I know the first 500k, is not taxed on sale.
If I'm wrong on this maybe someone can set me straight. I have receipts that fill up a filing cabinet...lol
nitetrak

[gdb81]

Well your accountant is correct, give her a raise...wait scratch that, accountants make far more than they deserve to begin with

The $3,000 limit is on capital losses in excess of capital gains, but you can sell your junk stocks to offset the capital gain on the sale of one of your homes (which is not, I presume, your primary residence) as much as you want, not to exceed $3,000 in losses above your capital gains amount.

So if you sold your house for $28,000 in capital gains you can sell your stocks and claim up to $31,000 in capital losses. Anything you sell that provides capital loss beyond that can not be claimed, but can be carried over to next year.