3 ms·
I _thought_ I knew a lot about capital gains taxes until filing my own taxes this year. After firmly boarding the tax-loss harvesting hype train, I had fallen
by settrans 4y ago
I _thought_ I knew a lot about capital gains taxes until filing my own taxes this year.
After firmly boarding the tax-loss harvesting hype train, I had fallen prey to the intuitively appealing idea that short-term capital losses could offset gains from the sale of a rental property held for less than one year. It turns out that short-term gains from the sale of business property flow (Form 4797) directly to your Schedule 1, without an opportunity for Schedule D losses to offset them.
Now as a result I'm sitting on a 5-figure tax bill and 6-figure capital loss carryforward.
- sfhlihfdhcd 4y agoand you just learned laws that are overly complicated are there exactly for that! so it's working perfectly as intended. sucks to be you though.
- lotsofpulp 4y agoThe intention is to prevent commingling of business gains/losses with personal gains/losses. I see no reason to assume bad intentions. https://www.realized1031.com/blog/what-is-the-difference-between-a-schedule-d-and-form-4797 https://www.realized1031.com/blog/what-is-the-difference-bet...
- l3mure 4y agothat's some good schadenfreude, thanks
- dennis_jeeves1 4y agoMy heartfelt sympathies...