Legal Question in Tax Law in California

I have a loss/carry forward from a prior year of around $250,000, that has been entered on all previous returns, and I am wondering if it can be applied 100%-dollar for dollar- against the capital gain that will be realized upon the sale of my home. I am ready to enter escrow for the sale of that home, but I need an unequivocal straight answer to this question.My filing status is 'single'. Thank you


Asked on 5/30/11, 12:13 pm

1 Answer from Attorneys
Mayer Nazarian Nazarian Law and Tax Group

You won't find and unequivocal straight answer here. You will find general answers. To get an unequivocal answer, all the factors specific to your case would need to be reviewed.

With that said, generally speaking, yes, a long term loss which has been carried forward from a previous year can be offset by a current long term capital gain dollar-for-dollar.

If you want unequivocal comfort, I suggest you contact a competent tax attorney, that can review all the facts of your case and give you the correct answer. Feel free to contact us or any of the other tax attorneys listed on Law Guru.

Good Luck,

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Answered on 5/30/11, 1:24 pm


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