asked

I had a rental property since 2008 which I sold in Dec 2020. The total passive loss (from previous years and the year of sale) is $15,000, and the capital gains after the sale are $50,000. Can I defer tax on all of the $50,000 gain by investing in a Qualified Opportunity Fund (QOF) and still claim the $15,000 passive loss when filing 2020 taxes? If not, what happens to the passive loss, and when can I claim it? Additionally, if only $35,000 of the capital gain is invested in a QOF, can I use the remaining $15,000 gain to offset the passive loss, given that tax on $35,000 of the gain has been deferred due to QOF investing?

September 30th, 2024

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