Assume I sell my home and I have a capital gain of $100,000 on the sale. This is after using my $250,000 exemption and increasing the basis by the cost of major improvements - finishing the basement and building a screened-in porch.
Couple of questions about the tax treatment of the gain:
1. I've owned the home for 25+ years. Please confirm that the gain is long-term.
2. Please confirm that I report the gain just as I would the gain on a stock or ETF - on Form 8949 and Schedule D.
3. Now the biggie. Assume I have $20,000 in carry-forward losses from the sale of stock in a previous year. Please confirm that my $100,000 gain is reduced to $80,000 after using the carry-forward loss. In other words, even though the two assets (home and stock) are very different, one can offset the other since they both find their way on to Schedule D.
Thanks!
Couple of questions about the tax treatment of the gain:
1. I've owned the home for 25+ years. Please confirm that the gain is long-term.
2. Please confirm that I report the gain just as I would the gain on a stock or ETF - on Form 8949 and Schedule D.
3. Now the biggie. Assume I have $20,000 in carry-forward losses from the sale of stock in a previous year. Please confirm that my $100,000 gain is reduced to $80,000 after using the carry-forward loss. In other words, even though the two assets (home and stock) are very different, one can offset the other since they both find their way on to Schedule D.
Thanks!