I entered the 2023 tax season with the following carryovers.
-Short-Term Capital Loss: $15,000
-Long-Term Capital Loss: $10,000
In years past I have claimed the $3,000 loss to my ordinary income out of these losses.
During 2023 I sold two pieces of real estate.
Property 1:
-Owned 2 Months
-Net Gain $25,000
Property 2:
-Owned 10 Months
-Net Gain $44,000
1. Is it correct that neither of the carry-over capital losses can be used to offset the real estate gains because all real estate gains held for less than 1 year are treated as ordinary income?
2. If the properties were sold after owning them for 13 months could I have used both the Short & Long term carry-over capital losses?
3. If the properties were sold after owning them for 25 months could I have used both the Short & Long term carry-over capital losses?
