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Updated almost 9 years ago on . Most recent reply presented by

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276
Posts
84
Votes
Matthew T.
  • Investor
  • Springfield, MA
84
Votes |
276
Posts

Does Depreciation of one property Offset Capital Gains on another

Matthew T.
  • Investor
  • Springfield, MA
Posted

I am just looking for clarity on this matter.  If I have a bunch of depreciation in my holding company, can that be used to off set capital gains tax on my flips?

Most Popular Reply

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1,981
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Bryan O.
  • Specialist
  • Lakewood, CO
1,198
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1,981
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Bryan O.
  • Specialist
  • Lakewood, CO
Replied

@Matthew T. are you filing as a "real estate professional"? If not, there is only a certain amount of depreciation that will flow out to your normal income. @Alan Russell was right here as well, your flips are not capital gains, they are ordinary income.

@Brandon Hall

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