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How to offset my capital gains

Last year before I was able to sell the home I had to pay off a lien that was placed on my home but I forgot to report it in my taxes would I be able to report it this year as a loss with my capital gains I got this year from selling my home?

 

And if I use the money I got from selling my home and getting a new home and renting part of it out on airbnb and buying a car with the money from the home I sold and using it as an uber can I deduct any of it from the capital gains I got from selling my home this year? Like can I file the airbnb house fixing washer and dryer and utility and uber buying a new car as a depreciation to offset my capital gains from selling my home this year?

 

My gross income is 0 I have no job and no income and the only thing I have was the home I sold and it has capital gain even after the $250,000 filing Single, or more than $500,000 filing Married Filing Jointly the sale. So my question is what can I do to offset me paying so much in next year 2022 taxes? Like will I have to pay less of the house sale capital gains if the new home I have solar installed?

 

Also I have lost money in stocks and crypto this year will that help lower my taxes this year with the house capital gains?

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3 Replies
OpeA1
Employee Tax Expert

How to offset my capital gains

Hello @Insignia!

 

Whatever you forgot to report on a year's taxes, means  you should go back to amend that year. So, if you forgot to report the lien in 2021, you need to file a 1040X (amended 1040) to report it. You have three years to file an amendment. You can use your Turbo Tax software to do this for free. 

 

Since you sold your home this year, you will include the sale on your tax return for 2022. On this return, you will add the capital gains you received, and if over the limit, as you stated, it will be taxed.

 

Each transaction is treaded separately on your taxes. So, yes if you installed solar on the home, then include it in your return and obtain the credit for that. Turbo Tax will automatically help you calculate that. Likewise, your Uber and Airbnb transactions should be entered on your return as separate transactions, which if there is a loss/cost, then this amount will reduce you overall taxable income, thereby offsetting any overall gains. 

 

The same goes for trades in stocks and crypto. if you made a loss it will reduce your taxable income, but if you made a gain, that will increase your taxable income.

 

As you put all this information into Turbo Tax, the software will calculate all aspects of your return and since it is one return each transaction will be considered in the overall tax liability.

 

Let me know if you have other questions/concerns.

 

Thank you!

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How to offset my capital gains

So to lower my tax liability since I have the home capital gain I can do other things to offset it like buying a new car and becoming an uber driver with it and buying a house and fixing it and buying new washer and dryer for it and making part of it an airbnb (since I will be living in it also) and get solar on it for solar credit? 

 

I am trying to lower the amount of taxes I will need to pay for next year taxes because of the home sale capital gains so that I wont have to pay that much so I am trying to find anything to lower it.

OpeA1
Employee Tax Expert

How to offset my capital gains

Yes, since your tax return will contain everything you do, costs such as starting an Uber business by buying a car, or installing solar, or costs from renting out your house as an Airbnb will offset any gains you make. 

 

Here is our free TaxCaster Tool to aid in your estimation of next year's taxes as you plan towards it.

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/ 

 

  1. Go to Tools and Resources
  2. Tax Calculator
  3. TaxCaster Tax Calculator

I hope this helps!

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**Mark the post that answers your question by clicking on "Mark as Best Answer"
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