Use stock loss to offset primary residence capital gain?

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Luckylucyy
Posts: 3
Joined: Mon Dec 27, 2021 12:14 am

Use stock loss to offset primary residence capital gain?

Post by Luckylucyy »

Does anyone know if I can use stock loss to offset primary residence capital gain?

For example, I sold my primary residence with a 300k gain. I have to pay capital gain tax on 50k gain after 250k exemption. I have 50k loss in stock same year. Do I owe any capital gain tax?

Thanks
Silk McCue
Posts: 7019
Joined: Thu Feb 25, 2016 7:11 pm

Re: Use stock loss to offset primary residence capital gain?

Post by Silk McCue »

From TurboTax.

Losses on your investments are first used to offset capital gains of the same type. So, short-term losses are first deducted against short-term gains, and long-term losses are deducted against long-term gains. Net losses of either type can then be deducted against the other kind of gain.Feb 28, 2022

Cheers
secondcor521
Posts: 701
Joined: Wed Sep 10, 2014 4:11 pm

Re: Use stock loss to offset primary residence capital gain?

Post by secondcor521 »

Luckylucyy wrote: Fri May 13, 2022 3:43 pm Does anyone know if I can use stock loss to offset primary residence capital gain?

For example, I sold my primary residence with a 300k gain. I have to pay capital gain tax on 50k gain after 250k exemption. I have 50k loss in stock same year. Do I owe any capital gain tax?

Thanks
You can offset. In fact, you must.

In the scenario you describe, you would have no net capital gain and therefore would have no capital gains taxes due.

You might want to review IRS Pub 523; there are buying costs, selling costs, and capital improvements that you might be able to include to reduce the $50K gain, possibly significantly.
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