topic Re: Offset loss from sale of a land parcel with a long term gain from stocks in Investors & landlords

Offset loss from sale of a land parcel with a long term gain from stocks

4NAxent — Wed, 11 Feb 2026 10:34:13 GMT

Can I offset a loss from the sale of an idle land parcel with a long-term gain from the stocks?

Re: Offset loss from sale of a land parcel with a long term gain from stocks

Bsch4477 — Tue, 10 Sep 2024 19:11:39 GMT

Yes, both are capital assets.

Re: Offset loss from sale of a land parcel with a long term gain from stocks

4NAxent — Tue, 10 Sep 2024 20:00:58 GMT

Thanks. For years, my CPA kept on telling me that I could not offset my loss from the sale of the land parcel with the long-term capital gains.

Re: Offset loss from sale of a land parcel with a long term gain from stocks

VolvoGirl — Tue, 10 Sep 2024 21:22:24 GMT

Yes, the land sale is just another investment. You enter it as an investment sale just like stocks. If you have investment sale losses, after you subtract the losses from your gains if you still have a Net Loss you can deduct up to 3,000 per year. The rest you have to carry over.

You have to report the carryover every year until it's used up. You can't skip a year. Even if you don't report it on your return you have to reduce it by the 3,000 (1,500 MFS) when you carry it over to next year. You can't choose when to use it.

When did you sell it? Do you need to amend some prior years?

Re: Offset loss from sale of a land parcel with a long term gain from stocks

4NAxent — Wed, 11 Sep 2024 16:05:31 GMT

I am selling it now, in 2024 so I am getting ready with what I can legally do. Thanks for the answers. I asked my CPA a few times in the past about offsetting my loss from the land sale with long-term gains from stocks and he kept on telling me I could not do it. I always wondered about his answer but he was adamant about not claiming loss from the land sale to offset LT gain from the stocks.

I hope that we are right in claiming the loss on the sale of the land and offsetting it with the LT gain from the stocks.

Thanks

Re: Offset loss from sale of a land parcel with a long term gain from stocks

KerryOn — Sun, 01 Dec 2024 04:59:23 GMT

Your CPA may have been thinking that you can't offset losses from a real estate rental against stock investment losses as a real estate rental is considered a "passive" activity and can only offset other "passive" actiity gains. I'm not a tax expert so you'll want to check with them on this.