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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 6487
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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Last year, I sold a real estate at a lost. I know on a

Customer Question

Last year, I sold a real estate at a lost. I know on a Federal return, you can take a$3000 Loss and carryover to future years until it is used up. But my question on an Alabama return, can I take whole lost or can I take the
$3000 loss that I reported on the Federal and carryover the remainder for future years?
Submitted: 11 months ago.
Category: Tax
Expert:  Stephen G. replied 11 months ago.

What type of real estate did you sell?

Expert:  Stephen G. replied 11 months ago.

Are you a resident of Alabama.

Customer: replied 11 months ago.
Farm land and small house and I'm resident of Alabama
Expert:  Stephen G. replied 11 months ago.

For Alabama purposes, in terms of a capital loss, the entire loss is included in the year of sale; the excess loss over capital gains is not limited to $3,000. as it is on the Federal return.

From the Alabama Instructions for the Schedule D.

Under Alabama law the entire gain is taxable, and the entire loss is deductible in the year in which it occurs.

Expert:  Stephen G. replied 11 months ago.

Losses on Personal Residences are not deductible.

Customer: replied 11 months ago.
Thank you for confirming. I thought that was right. The property was not personal Residence. So, you've answer my questions and you don't have to call now.
Expert:  Stephen G. replied 11 months ago.

Great...............Please remember to rate my response as that is the only way we receive credit for our work.

Thanks very much,

Steve G.

Expert:  Stephen G. replied 11 months ago.

Just checking in..........do you have any further questions?