Capital losses and gains on Arizona property
Posted date : May 11, 2022.
We bought a personal use home in Goodyear in 2007 and sold it at a capital loss in 2015. We had no U.S.-based income, so did not file a U.S. income tax return. At that time, we purchased a larger home and we are optimistic that it will sell for a considerable capital gain in the near future. Can the earlier capital loss on the first house be used to offset some of the anticipated capital gain on the current house? Is it too late to get the earlier capital loss on the U.S. tax record? I am guessing that many snowbirds went through a similar situation.
Stephen Murray
Medicine Hat, ON
Ed.: We would suggest reporting both transactions in the tax return which you file on the sale of the present property. Nothing to lose.
