Can a short term capital loss balance long term capital gains?


J

Judy

My boss sold his house (lucky guy) at a price well above basis and
over his $250,000 exclusion. He has a lot of stock losses this year.
Can he use BOTH long and short term investment losses to cover his
long term capital gains on his house? Any additional ideas on the best
way to reduce taxes on this one-time large capital gain event? He is
over 70 years old and the house was located in Hawaii. Thank you.

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R

Rich Carreiro

Judy said:
My boss sold his house (lucky guy) at a price well above basis and
over his $250,000 exclusion. He has a lot of stock losses this year.
Can he use BOTH long and short term investment losses to cover his
long term capital gains on his house?
Yes.

--
Rich Carreiro (e-mail address removed)

--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
 

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