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Level 2
April 3, 2021
Question

Sale of Investment Property at Loss

  • April 3, 2021
  • 9 replies
  • 29 views

I sold a commercial property at a loss in 2019. After using the loss to offset gains, there was still 78kremaining. Can I use this remaining balance to offset income/gains in 2020 or do is that capital loss only offset against the sale of the property in the year it was sold?

Thank you

    9 replies

    Level 13
    April 3, 2021

    If you had unused capital losses in 2019, you can carry them over to subsequent tax years to offset capital gains (or, with limitations, ordinary income).

     

    See What is a capital loss carryover? for an explanation of the capital loss carry-over process and links on how to enter them in your return. If you used TurboTax in 2019, unused losses would automatically carryover to your 2020 return.

    Level 15
    April 3, 2021

    @Maverick67 Was this property used for rental purposes? 

    Level 2
    April 3, 2021

    Yes. It was a commercial bar, rented for 20 years