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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3181
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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In 2005 I purchased 200 acres on a major highway with the

Customer Question

In 2005 I purchased 200 acres on a major highway with the intentions of selling it to a major developer…. unfortunately, the 2007 financial crises significantly decreased the amount of development and property values dropped.
the costs for the land totals approximately $800,000….. but am preparing to sell the land in 2017 for about $100,000 which is about a $700,000 loss.
….I am selling a few investment houses in 2017 and hope to have about a $200,000 capital gains.
question: In 2017 can my $700,000 loss on the sale of my land investment be written off against my $200,000 capital gains . ??
… Also , can the $700,000 loss be written off against my wife's $225,000 job's 2016 earned income
thank you for your ideas ….
Submitted: 5 months ago.
Category: Tax
Expert:  Barbara replied 5 months ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Capital losses can be used to offset capital gains.

Only short term capital losses can be used to offset earned income.

https://www.irs.gov/uac/irs-reminds-taxpayers-they-can-use-stock-losses-to-reduce-taxes

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Expert:  Barbara replied 5 months ago.

Just following up with you to see if you have any other questions. If so, please let me know so I can assist you further.

Best regards,

Barb