Can a rental property loss offset a long term capital gain on stock sales? They are both passive income.

[ralphhammondcubs]

Can a rental property loss (depreciation and other expenses, not a sale) offset a long term capital gain on stock sales? They are both passive income.

[MichaelL1]

Do you have a passive activity loss not allowed?

If so, the capital gain will not help you.

[MichaelL1 · Accepted solution]

If your rental losses are limited then you are most likely in the 24% tax bracket, the the capital gain rate should be 15%, however if the loss became limited due to this capital gain being added, then you have the 15% capital gain tax, plus 24% on the disallowed rental loss. This is why it might be showing the 27% increase.