As it says from the top, back in November I sold all of my shares of stock I had and used it to help buy a house - I used it as a down payment. Somebody told me since I used that money to purchase the house I've been living in since November it might be tax deductible. Is this true?
2007-01-19 12:00:16 · 4 answers · asked by Matt 4 in Business & Finance ➔ Taxes ➔ United States
you have to report any capital gains (losses) from your stock sales on Schedule D of form 1040. all gains are income, losses are deductible only up to ($3,000).
2007-01-19 21:10:38 · answer #1 · answered by tma 6 · 0⤊ 0⤋
Ask a CERTIFIED financial professional for the real deal.
But, since you bought a house (that you are presumably living in) with your stock--NO.
It would have to be an investment property, and you still have to pay Capital Gains on your stock because you cannot do a 1031 Exchange with stock. (My wife and I just did a 1031 Exchange of real property.)
Simply keep your house as a primary, rent it out for only 3 years if you want (and if it covers the mortgage, taxes and insurance), and then sell it and keep the Capital Gains up to $500,000.
Talk with someone about other investment opportunities you may be interested in, and have you $$$ work for YOU!
2007-01-19 20:12:02 · answer #2 · answered by Peter S 3 · 0⤊ 0⤋
No it's not true. You can't go from a commercial enterprise to a residential with the money and use it as a deduction unless the house is a rental and used exclusively as that.
2007-01-19 20:09:23 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No. You'd have to pay any capital gains taxes that are due on what you sold, if there is a net gain.
2007-01-19 20:33:11 · answer #4 · answered by Judy 7 · 0⤊ 0⤋