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    msfantastic's Avatar
    msfantastic Posts: 13, Reputation: 1
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    #1

    Sep 15, 2009, 07:22 PM
    Passive loss carryover
    I rented out my primary residence for a while and has a passive loss carryover. I heard that I cannot use it until I sell the house.

    1) Can I offset it with other passive income such as investment income?

    2) When I sell the house, how does the passive loss carryover affect the primary residence exemption? (let's say my gain was $300K and the exemption is $250K (single) so I have a taxable gain of $50K and the passive loss carryover is $10K)
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Sep 16, 2009, 01:53 PM
    In theory, your capital gain would be reduced by $10K. You CANNOT claim the loss against investment income.
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