Capital Gains and Losses
Questions and comments about tax rules for buying and selling stocks, mutual funds, real estate and other assets.
Capital loss on land sale?
Posted by: Mak Roberts, February 27, 2017 05:32PM
We purchased two side-by-side plots of land in 1979 in a residental zoned area. We paid approximately $9,000.00 for both. We have been paying the state about $80 a year for property tax. Now, after that many years, the land is becoming isolated and it would be very hard to sell it at the price we paid, and even with much less offer. This year, I'm starting to withdraw mandatory IRA in which it will increase our income and possibly our bracket. What can I do with this land(at any price) to off set the increase in our income or do I need to sell mutual funds that I have gains with them to be able to deduct the capital loss in the land? Thank you so much!! Mack

Re: Capital loss on land sale?
Posted by: Art, February 27, 2017 08:08PM
Even if you have a capital loss on the land sale you can always claim a net capital loss of up to $3,000 each year and carry the remaining loss forward.

The ability to carry forward the remaining loss does not expire until you do.

Re: Capital loss on land sale?
Posted by: Mak Roberts, February 27, 2017 09:10PM
Thank you Art!!



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