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Capital Gain Tax limits


WML13's Avatar
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10-26-17, 08:38 PM   #1 (permalink)  
Capital Gain Tax limits

I sold a property that has netted me a sizable capital gain. I have a capital loss that has carried over from a sale of bonds two years ago that should cover the gain, but I am not sure what the limits are. It seemed to me that if you have a gain in a year that is more than 3000 dollars, your previous loss only wipes out 3000 dollars and you pay taxes on the remainder of the gain that year. Am I correct?

 
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10-27-17, 03:50 PM   #2 (permalink)  
If the property were your primary residence you have the option to take a one time deduction of iirc, $250,000. The $3,000 limit is if you are filing single. It's half of that if you are married. There are a lot of variables. Look at the site below or hire a tax preparer.


https://turbotax.intuit.com/tax-tips...sses/L7GF1ouP8

 
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01-26-18, 06:27 AM   #3 (permalink)  
Generally, all capital gains and all capital losses offset each other.

If the result is a capital loss, then, as the next step of doing your return, a maximum of $3000. of that can offset other income such as wages, interest, net rental income, etc. for the current year.

Follow the instructions for Schedule D to get the short term gains and past/present losses and the long term gains and past/present losses matched up and then get that $3000. amount figured out properly or, if you have a net gain, get the capital gains tax rates figured in..

 
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01-26-18, 08:07 AM   #4 (permalink)  
Capital Gain Entrees

Thank you for your replies. Since my first post a lot has happened. I now have a form k-1 from the trust that sold the property . the amout (about 10000) is listed as a "long term capital gain line 4a" Should this amount be entered in TurboTax on Schedule D alone, or on the entries for K1 amounts (income) or in both places? I know it has to hit schedule d for the program to match it to the long term loss carryover, but wasn't sure how to enter it. Clues? (this was not my primary residence, it was a family farm)


Last edited by WML13; 01-26-18 at 08:09 AM. Reason: More Data
 
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01-26-18, 08:58 AM   #5 (permalink)  
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I did a review of the TurboTax program, and I can see that the forms have picked up the entry from the K1 entry amount and applied its magic to the final 1040 properly. Sorry I cried "wolf"!

 
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