We sold our primary house in 2022 and made a profit of $1,350,000. We are eligible for a $500,000 tax exemption. That still leaves us with $850,000 in long-term capital gains. I also have a capital loss carryover on bad stock investments of $800,000 over the past 10 years. $700,000 in the short term and $100,000 in the long term. I'm older and don't want to die with the capital loss carryover and no longer invest in stocks or real estate except my primary home. Can I use this capital carryover total loss on the gain over the $500,000 exclusion, which is $850,000. I know short-term gains would save more taxes, but not planning on risking or trying to do this. I’m willing to give up that and apply the capital gains carryover loss I’ve been carrying of $800,000 for the overage amount of the exemption. Can I do this? That would reduce my capital gains tax after the $500,000 exclusion from $850,000 to $50,000. And my capital loss carryover when then be reduced to zero. I hope my issue and question are clear. Thanks for your heP!
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