rayarmand
New Member

I sold a rental property in 2017, with profit. I had almost equal amount of loss in rental business. Can the loss compensate that capital gain in New Jersey?

My federal tax shows the renal capital gain is compensated by the rental loss. However, my New Jersey tax shows a taxable capital gain and a business loss carry over.

IsabellaG
Expert Alumni

Investors & landlords

No. New Jersey has different rules regarding losses. You can only deduct losses against the same category of income, and only in the year that the loss occurred. So your rental losses can't be used to offset your capital gains. 

See this link to the NJ Division of Taxation.

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