The long term capital loss can be used to offset capital gains but you real estate income (from rentals I assume - not sales) is ordinary income. If you don't have capital gains sufficient to offset the loss (it appears you haven't any capital gains) you can use the loss to offset $3,000 of ordinary income. The balance gets carried over and can be used to offset future capital gains or $3,000 a year until it is all used up. First it offsets capital gains and the remainder offsets ordinary income to the tune of $3,000 per year. If you have any capital assets that have appreciated in value and if sold would generate capital gains. Look at the possibility of selling them to use up the loss, especially if you planned on selling them in the future. You can buy them back again.
