Can a loss on my home sale offset gains in my stock portfolio? - world cultures

Can a loss on my home sale offset gains in my stock portfolio?

Q: I plan to become a Florida resident and will sell my New Jersey home in the next few years. I expect to take a loss on the sale. If I am still in New Jersey when I sell the house, can I offset the loss against the gains in my stock portfolio on my NJ tax return?

– merchant

A: We are sorry to hear that you suffered a loss in the sale of your home.

sorry but no.

Jill Rosen, a certified public accountant in Martinsville, said the loss from selling your personal residence is a non-deductible tax loss because the transaction is personal in nature.

She said losses are only allowed when real estate used for commercial or investment purposes is sold.

“Although the loss is not deductible, you will have to report this transaction on your tax return if you received a Form 1099-S to Report the Sale,” she said. “If you receive a 1099-S, the sales price and cost basis must be reported on Form 8949. Then enter the amount of the non-deductible loss as a positive number in column (g) on ​​this form.”

Consider working with a tax preparer if you’re not sure how to report the sale.

Good luck and God bless you.

Email your questions to [email protected].

Karen Price Mueller writes a file tricked Column for NJ Advance Media and Founder Follow NJMoneyHelp on Twitter Tweet embed You find NJMoneyHelp on Facebook. sign for‘s Electronic weekly newsletter.

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