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Investors & landlords
You can use LTCL carryover to the extent any gain exceeds your depreciation recapture.
Example: Section 1245 gain (personal property) is $11,000 and Section 1245 depreciation is $10,000, you would have $10,000 of ordinary income recapture and then $1,000 of capital gain.
Section 1250 gain (real property) is $50,000 and Section 1250 depreciation is $45,000, you would have $45,000 unrecaptured 1250 gain taxed at 25% and then $5,000 capital gain. So in this example you would be able to utilize $6,000 ($1,000 plus $5,000) of your capital loss carryover to offset the $6,000 capital gain. Plus you would then be able to use an additional $3,000 capital loss carryover.
Example: Section 1245 gain (personal property) is $11,000 and Section 1245 depreciation is $10,000, you would have $10,000 of ordinary income recapture and then $1,000 of capital gain.
Section 1250 gain (real property) is $50,000 and Section 1250 depreciation is $45,000, you would have $45,000 unrecaptured 1250 gain taxed at 25% and then $5,000 capital gain. So in this example you would be able to utilize $6,000 ($1,000 plus $5,000) of your capital loss carryover to offset the $6,000 capital gain. Plus you would then be able to use an additional $3,000 capital loss carryover.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
Also keep in mind the date of replies, as tax law changes.
‎June 4, 2019
12:38 PM
6,717 Views