to see whether you might qualify for a home mortgage interest expense deduction. The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest. While most investors are often the most concerned about capital gains, depreciation recapture is actually the first tax bill you have to pay when you sell an investment property. And remember that capitol gains are calculated on the cost basis of your home, not the original purchase price. Other IRS approved projects include adding new built-in appliances, wall-to-wall carpeting or flooring, or improvements to a home's exterior, such as replacing the roof, siding, or storm windows. Small Updates, Big Return: 5 Ways to Increase Your Homes Value, Want to Rent Your Vacation Home? The table below breaks down 2022 short-term capital gains tax rates by filing status: For more information on tax shelters and gifting arrangements, see Guide T4068, Guide for the Partnership Information Return (T5013 Forms). We do not manage client funds or hold custody of assets, we help users connect with relevant financial advisors. If you get a larger refund or smaller tax due from another tax preparer, we'll refund the applicable TurboTax Live Full Service federal and/or state purchase price paid. It all depends on what you put in. When figuring the holding period, the day you buy property does not count, but the day you sell it does. Outside of a retirement account, you have to pay tax on gains in these items by April 15 of the year after you sold them. The IRS allows taxpayers to exclude certain capital gains when selling a primary residence. You candeduct property taxesagainst your rental income, though, provided the property tax is uniformly assessed throughout the jurisdiction and is not a special assessment. WebCan renovation costs be deducted from capital gains? You can get up to $500,000 of your profit tax-free ($250,000 if single or married filing separately). The trademarks MLS, Multiple Listing Service and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA. Terms and conditions, features, support, pricing, and service options subject to change without notice. There's a very big difference. You spend $25,000 making upgrades and improvements to the property. If you have an overall net capital loss for the year, you can deduct up to $3,000 of that loss against other kinds of income, including your salary and interest income. Refer to Publication 936, Home Mortgage Interest Deduction and Can I Deduct My Mortgage-Related Expenses? Their taxable gain is equal to Your adjusted basis is generally your cost in acquiring your home plus the cost of any capital improvements you made, less casualty loss amounts and other decreases. If youre considering real estate as an investment, for example, you may choose to open a. Refer to Publication 551, Basis of Assets for more information. (What it cost you to purchase it) If this If you have more than $3,000 in capital losses, this excess amount can be carried forward to future years to similarly offset capital gains or other income in those years. You can deduct any expenses involved in the maintenance or selling of your second home to lower your capital gains taxes. Nov 10, 2022 Filing 2021/22 expenses and benefits returns 2022 Capital gains tax annual exempt amount use it or lose it Assessments or taxes associated with a specific improvement benefitting one home aren't deductible. Losses on your investments are first used to offset capital gains of the same type. For stocks, crypto, ESPPs, rental property income and more, TurboTax Premier has you covered. So, for 2022, the maximum you could pay for short-term capital gains on rental property is 37%. Short-term profits are usually taxed at your maximum tax rate, just like your salary, up to 37%and could even be subject to the additional 3.8% Medicare surtax, depending on your income level. You can also deduct any repairs or renovations you made to an investment property to improve the final selling price of the home. What Expenses Are Deductible When Selling a House Do you know what expenses can be deducted from capital gains tax? You can't deduct the routinemaintenance costs while the property is not available for rent. For example, if an investor has investment income of $1,000 and interest expenses of $500, then he or she can deduct the interest expense of $500 on the tax return. For example, if you earn $441,451 or more, your capital gains rate would be 20%. SmartAssets, When a home sustains damage from natural disaster or fire, any expense required to return the home to its previous condition is a. If a portion of your monthly mortgage payment goes into an escrow account, and periodically the lender pays your real estate taxes out of the account to the local government, don't deduct the amount paid into the escrow account. State and local property taxes are generally deductible, according to the IRS, and you can still deduct up to $10,000 in state and local taxes total between all properties you own per tax return. prices here, Premier investment & rental property taxes, TurboTax Live Full Service Business Taxes, 5 Things You Should Know about Capital Gains Tax, Sales taxes, excise taxes and other taxes and fees. Any excess net capital loss can be carried over to subsequent years to be deducted against capital gains and against up to $3,000 of other kinds of income. It tallies up all the rental income you received and subtracts your expenses from the total. In every bracket, however, the IRS takes a smaller cut out of long-term gains than out of ordinary income or short-term gains. WebF is the total amount of decline in value deductions claimed over the period of ownership of the rental property. Im a new user, Easily calculate your tax rate to make smart financial decisionsGet started, Know how much to withhold from your paycheck to get a bigger refundGet started, Estimate your self-employment tax and eliminate any surprisesGet started, See how much your charitable donations are worth Whats cost basis? Ralph DiBugnara, vice president at Cardinal Financial, says lawmakers might push to change this so that homeowners would have to live in the property for five of the past eight years, instead of two out of five. The tax law divides capital gains into two main classes determined by the calendar. Net losses of either type can then be deducted against the other kind of gain. For real estate, you must spread the deduction out over 27.5 years. You can also discuss what to do with the proceeds from the sale of the home. The money you pay out for items is a business expense. This means you can only offset short-term capital gains with short-term capital losses and long-term capital gains with long-term capital losses. Depending on your marginal income tax bracket, these taxes could range from 0% to 15%. There are certain things you can do as a real estate investor to help manage your tax bill and maximize your after-tax return on investment. Depreciable items are generally those that are capital expenses. Security Certification of the TurboTax Online application has been performed by C-Level Security. The amount of capital gains tax youll owe on the sale of a second home depends on several factors, including: Capital gains tax can be assessed at short- or long-term rates. However, the improvements have to be of a certain type, and you cant claim the deduction until you sell your home. The holding period is the amount of time that you own the property before you sell it. You may deduct only the amount of your total medical expenses that exceed 7.5% of your adjusted gross Let a tax expert do your investment taxes for you, start to finish. Any excess net capital loss can be carried over to subsequent years to be deducted against capital gains and against up to $3,000 of other kinds of income. How do I clear and start over in TurboTax Onli Premier investment & rental property taxes. For example, many people buy items at antique stores and garage sales and then resell them in online auctions. Note: You cant depreciate your personal residence. As an individual, your deduction of state and local income, sales, and property taxes is limited to a combined total deduction of $10,000 ($5,000 if married If you have no capital gains, you can deduct $3,000 annually until you have recognized all your capital loss carryforward. Get started, Estimate capital gains, losses, and taxes for cryptocurrency sales (which will reduce returns). By accessing and using this page you agree to the Terms of Use. File confidently with Americas #1 tax prep provider. 4. Repair costs dont have to be documented when claimed, but the IRS may later ask to see proof. Capital gains taxes range from 0% to 20%, depending on the sellers income and how long the property was owned. current I sold my recreational land this year. If the house is a personal home and you have lived there several years, though, you may be able to avoid paying tax. This difference in tax treatment is one of the advantages a "buy-and-hold" investment strategy has over a strategy that involves frequent buying and selling, as in day trading. This is a broad concept, so we can only cover the very basics here. For example, in 2021, individual filers won't pay any capital gains tax if their total taxable income is $40,400 or below. (When these rules apply, the childs gains may be taxed at the parents higher rates.). That can be any combination of mortgage debt (of any kind) on one's primary home as well as on a 2nd home. Tax-filing status. The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest. The good news is that the tax code allows you to exclude some or all of such a gain from capital gains tax, as long as you meet all three conditions: If you meet these conditions, you can exclude up to $250,000 of your gain if you're filing as single, head of household, or married filing separately and $500,000 if you're married filing jointly. WebHow capital gains tax (CGT) works, and how you report and pay tax on capital gains when you sell assets. There are probably at least a dozen ways to avoid capital gains tax on stocks, but we're going to focus on the three most common. MBA, Enrolled Agent. The changes in the tax law will expire at the end of 2025 if Congress The difference between them is business income, subject to, Limited interest and dividend income reported on a 1099-INT or 1099-DIV, Credits, deductions and income reported on other forms or schedules (for example, income related to crypto investments), Our TurboTax Live Full Service Guarantee means your tax expert will find every dollar you deserve. Webwhat expenses can be deducted from inheritance tax what expenses can be deducted from inheritance tax. Sure, you may remember way back to 2018 and its new tax codeaka the Tax Cuts and Jobs Actchanged some rules for homeowners. So, for 2022, the maximum you could pay for short-term capital gains on rental property is 37%. Yes, but there are limits. The gain is not realized until the asset is sold. The IRS allows taxpayers to exclude certain capital gains when selling a primary residence. Check out this list to make sure you dont miss any of them. Capital losses can be Will my credit go up if I pay off my credit card? You pass these tests if youve owned and used the home as your primary residence for at least two out of the five years prior to the sale. Since you owned the home for 10 years, the long-term capital gains tax rate would apply. Special rules apply to certain asset sales such as your primary residence. More on these later. If you needed to make home improvements in order to sell your home, you can deduct those expenses as selling costsas long asthey were made within 90 days of the closing, says Zimmelman. For example, say a homebuyer purchases a home for $200,000 and sells it after 20 years for $500,000. Only certain improvements can be deducted and many repairs are not deductible. The charge must be uniform against all real property in the jurisdiction at a like rate. What's the difference between a short-term and long-term capital gain? Deductible real estate taxes are generally any state or local taxes on real property levied for the general public welfare. This is not an offer to buy or sell any security or interest. Capital gains are the profits you make when you sell a stock, real estate or other taxable asset that increased in value while you owned it. The capital gains tax is based on that profit. The long-term capital gains tax rate is typically 0%, 15% or 20%, depending on your tax bracket. You do not have to pay capital gains tax until youve sold your investment. WebAnd yes, these profits are taxed as income. Taxpayers also may need to document the cost of the repairs using receipts and invoices, so it is best to keep accurate and completed records. In 2020 the capital gains tax rates are either 0%, 15% or 20% for most assets held for more than a year. (which will reduce returns). WebThe bank gives you a Form 1099-INT for 2021 showing the $575 interest you earned. This is not an offer to buy or sell any security or interest. Please switch to a supported browser or download one of our Mobile Apps. Subtract your adjusted-cost basis of $95,000 from your selling price of $200,000 and this will leave you with a capital gain of $105,000. For stocks, crypto, ESPPs, rental property income and more, TurboTax Premier has you covered. Please refer to the Instructions for Schedule A (Form 1040) and Topic No. This applies to losses as well, so if you bought shares of stock for $3,000 sold them for $2,000, and paid two $50 commissions, you'd have an $1,100 loss. WebScore: 4.1/5 (30 votes) . If you hold the property for 12 months, youll qualify for more favorable long-term Photo credit: iStock.com/FabioBalbi, iStock.com/Morsa monkeybusinessimages, iStock.com/Ridofranz. Please seek the services of a legal, accounting or real estate professional prior to any real estate transaction. Capital losses from investmentsbut not from the sale of personal propertycan typically be used to offset capital gains. Im a TurboTax customer What Is IRS Form 5498: IRA Contributions Information? Minor repairs and maintenance jobs like changing door locks, repairing a leak or fixing a broken window do not qualify as capital improvements. Rental income is taxable asordinary income tax. Any excess net capital loss can be carried over to subsequent years to be deducted against capital gains and against up to $3,000 of other kinds of income. Your expert will only sign and file your return if they believe it's 100% correct and you are getting your best outcome possible. They are typically taxed at ordinary income tax rates, as high as 37% in 2022. Long-term gains come from the sale of assets you have owned for more than one year. A new kitchen can be either capital expenditure or a revenue expense. What is Tax Assessed Value, Tax Appraised Value, and Market Assessed Value? This happens a lot with investments, but it also applies to personal property, such as a car. You may also use the Sales Tax Deduction Calculator. Youre typically not eligible for the exclusion if you excluded gains from the same of another home during the two years prior to selling your current home. WebCapital Losses. $50,000 - $20,000 = $30,000 long-term capital gains. If you wish to report an issue or seek an accommodation, please let us know. Second homes that are not used as primary residences, including vacation homes and investment properties, are considered to be capital assets under IRS rules. Instead, you must amortize your investment over a number of years. How and when CGT is triggered, such as when an asset is sold, lost or destroyed. Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type. So you wouldnt owe capital gains tax on any profits from the sale, up to the exclusion limit allowed for filing status. Keep records of home improvement and selling expenses. Conversely, if you lost money on any investment or asset, you can deduct your loss from the capital gains you earned on the sale of a home to reduce the net amount of capital gains taxes you will pay that year. If youre in the 28% tax bracket, youll pay a 28% tax on short-term capital gains. If you don't have capital gains to offset the capital loss, you can use a capital loss as an offset to ordinary income, up to $3,000 per year. Arm's length Want a full rundown of all the deductions (as well as tax exemptions or other write-offs) at a home sellers disposal? With TurboTax Live Full Service Premier, our specialized tax experts are here to help with anything from stocks to crypto to rental income. What happens if you Cannot pay back student loans? But rest assured that if you sold your home in 2021 (or are planning to in the future), your tax deductions when you file with the IRS can still amount to sizable savings. All investing involves risk, including A capital gain occurs when you sell something for more than you spent to acquire it. You can also file your own taxes with TurboTax Premier. This home sale exclusion is capped at $500,000 for couples and $250,000 for individuals. You cant deduct everything though. You are allowed to deduct from the sales price almost any type of selling expenses, provided that they don't physically affect the property. Say you purchase a home for $400,000, then spend $100,000 on improvements, you would have a cost basis of $500,000. Repairs on a rental property are deducted on IRS Schedule E as expenses. You owned the home for a total of at least two years. Proceeds Cost base = Capital gain outcome. (See IRS tax year 2020 1040 tables.) The capital gains exclusion on home sales only applies if it's your primary residence. is registered with the U.S. Securities and Exchange Commission as an investment adviser. The basic answer is "yes." If you have made a gain in the sale, as in the example above, you take the gain and multiply it by your tax bracket to calculate your capital gains tax. Costs of capital improvements can be deducted from taxes on gains when selling a home. If you sell something for more than your "cost basis" of the item, then the difference is a capital gain, and youll need to report that gain on your taxes. Only costs that affect the basis would count. current The seller must have owned the home and used it as their principal residence for two out of the last five years (up to the date of closing). Property and school district taxes are deductible in the year paid, only by the person or persons legally obligated to pay them. If you hold your mutual funds or stock in a retirement account, you are not taxed on any capital gains so you can reinvest those gains tax-free in the same account. WebE is the capital works deductions F is the total amount of decline in value deductions claimed over the period of ownership of the rental property $750,000 + $30,000 + $6,000 + $10,000 $35,000 $5,000 = $756,000 The capital gains outcomes are: Proceeds = 900,000 Proceeds Cost base = Capital gain outcome $900,000 $756,000 = $144,000 Assuming a 15% capital gains tax, deducting You may be able to exclude from income all or a portion of the gain on your home sale. We'll help you get started or pick up where you left off. People in the lowest tax brackets usually don't have to pay any tax on long-term capital gains. WebAny costs deducted against profits for Income Tax, see CG10260, are not allowable as a deduction for Capital Gains Tax. Getty Images There are judicial precedents that say interest expenses shall not be allowed as deduction against capital gains income. There are no guarantees that working with an adviser will yield positive returns. ("Adviser(s)") with a regulatory body in the United States that have elected to participate in our Capital gains are the profits you make when you sell a stock, real estate or other taxable asset that increased in value while you owned it. The capital gains tax is based on that profit. The long-term capital gains tax rate is typically zero, 15 or 20 percent, depending on your tax bracket. But minerals underneath the land do. Enrolled Agent with 10+ years of tax preparation experience. For information regarding the foreign tax credit, refer to Topic No. Limitations apply. 5 Tax Deductions to Take When Selling a Home, Tax Deductions on Home Equity Loans and HELOCs. Backed by our Full Service Guarantee. The table below breaks down 2022 short-term capital gains tax rates by filing status: (A third way,estate tax, applies only to dead investors.). You cant deduct capital investments like new buildings, additions or renovations. She subtracts the $4,000 in depreciation deductions. 856 and Am I Eligible to Claim the Foreign Tax Credit? Capital gains that are eligible to be reinvested in a QOF must be made within 180 days of realizing those gains, which begins on the first day those capital gains were recognized for federal tax purposes. Long-term gains on collectiblessuch as stamps, antiques and coinsare taxed at 28%, or at your ordinary-income tax rate if lower. The 1031 exchange makes it possible for real estate investors to defer paying capital gains tax, which is another advantage over investing in mutual funds, stocks, bonds and other securities or collectibles. You are allowed to deduct from the sales price almost any type of selling expenses, provided that they don't physically affect the property. Publication 17, Your Federal Income Tax for Individuals, Publication 936, Home Mortgage Interest Deduction. Get started. In the above example, the gain before capital improvement deductions would have been $300,000, so the taxpayer may have owed taxes on part of the gain before deductions. Long-term gains from stock sales by children under age 19under age 24 if they are full-time studentsmay not qualify for the 0% rate because of the Kiddie Tax rules. Examples of non-deductible repairs include: Several exceptions exist. Most individual investor landlords can deduct up to $25,000 per year in losses on rental properties, if necessary (subject to income limitation). For 2022, the capital gains tax exclusion limit for the sale of a home is $250,000 for single filers or up to $500,000 for married couples who file a joint return. This means that for it to work in your favor, all of your itemized deductions need to be greater than the new standard deduction, which the Tax Cuts and Jobs Act nearly doubled when it went into effect. They are typically taxed at either 0%, 15%, or 20% for 2022, depending on your tax bracket. The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Estimate your tax refund and where you stand. The capital gains outcomes are: Proceeds = 900,000. If you sold on March 20, you would have a short-term capital gain or loss. If you renovated a few rooms to make your home more marketable (and so you could fetch a higher sales price), you can deduct those upgrade costs as well. You can elect to deduct state and local general sales taxes instead of state and local income taxes, but you can't deduct both. Capital gain is an increase in the value of a capital asset (investment or real estate ) that gives it a higher worth than the purchase price. But heres the good news: You can exclude up to $250,000 of the capital gains from the sale if youre single, and $500,000 if married. As anyone with much investment experience can tell you, things don't always go up in value. Get year-round expert advice & every dollar you deserve, guaranteed with Live Full Service Premier. Finding a qualified financial advisor doesnt have to be hard. Wait at least one year before selling a property. Nonbusiness taxes may only be claimed as an itemized deduction on Schedule A (Form 1040), Itemized Deductions. So tax loss harvesting may not be enough to cancel out all of the gains from the sale of a second home. The buyers add the $212 to their basis in the home. For more information on nonbusiness deductions for taxes, refer to Publication 17 and Can I Deduct Personal Taxes That I Pay as an Itemized Deduction on Schedule A? If youre worried about getting hit with a large tax bill when selling a second home, there are some things you can do that might cushion the blow. The seller must not have sold a home in the last two years and claimed the capital gains tax exclusion. Can I Deduct Personal Taxes That I Pay as an Itemized Deduction on Schedule A? Funds spend to improve a home can be deducted from the capital gains when a home is sold, potentially reducing capital gains taxes. What is a capital asset, and how much tax do you have to pay when you sell one at a profit? $750,000 + $30,000 + $6,000 + $10,000 $35,000 $5,000 = $756,000. The single biggest asset many people have is their home, and depending on the real estate market, a homeowner might realize a huge capital gain on a sale. Average Retirement Savings: How Do You Compare? If you sell an investment asset for less than its cost basis, you have a capital loss. This browser is no longer supported. How Much Do I Need to Save for Retirement? For example, if a homeowner gets a tax credit for adding solar panels, the cost of the panels cant be deducted as a capital improvement. A financial advisor may be able to help if youre selling your second home. But heres the goodnews:You can exclude up to $250,000 of the capital gains from the sale if youre single, and $500,000 if married. Capital improvements can reduce this tax by increasing the cost basis for a home. Guide to Short-term vs Long-term Capital Gains Taxes (Brokerage Accounts, etc. Again, these rules are complex. Limited interest and dividend income reported on a 1099-INT or 1099-DIV, Credits, deductions and income reported on other forms or schedules (for example, income related to crypto investments), Our TurboTax Live Full Service Guarantee means your tax expert will find every dollar you deserve. Estimating how much you might pay using a capital gains tax calculator can help you develop the right strategy for carrying out the sale while minimizing what you might owe in taxes. Note that the mortgage interest and property taxes are itemized deductions. Jean's adjusted The IRS taxes the real estate portfolios of living investors in two primary ways: income tax and capital gains tax. Capital gains are reported on Schedule D, which should be submitted with your federal tax return (Form 1040) by April 18, 2023, or by Oct. 16, 2023, with an extension. which usually consists of the property's cost plus related buying expenses. You pay capital gains tax on the difference between your selling price in the property and youradjusted tax basis. appraisal fees. This could also includehome staging fees, according toThomasJ. Williams, a tax accountant who operatesYour Small Biz Accountantin Kissimmee, FL. Acquisition debt vs. home equity debt: What's the difference? an extension, kitchen upgrade, etc. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business. If youre flipping the property and youve owned it for less than a year, you pay short-term capital gains tax, which is the same rate as your marginal income tax rate. We do not manage client funds or hold custody of assets, we help users connect with relevant financial advisors. If you can exclude all of the gain, you don't need to report the sale on your tax return, unless you received a Form 1099-S, Proceeds From Real Estate Transactions. Includehome staging fees, according toThomasJ expert advice & every dollar you,... Your search results by suggesting possible matches as you type would apply received and subtracts expenses! Financial advisor may be taxed at either 0 % to 20 %, or at your ordinary-income tax is! Yes, these profits are taxed as income risk, including a capital gain occurs when sell... You hold the property and school district taxes are generally any state or local taxes on gains selling! Obligated to pay any tax on short-term capital gains tax until youve sold your investment gains two... Like changing door locks, repairing a leak or fixing what expenses can be deducted from capital gains tax broken window do not as! Tax, see CG10260, are not allowable as a deduction for gains... Figuring the holding period is the total amount of decline in Value zero, %! Tax brackets usually do n't have to be documented when claimed, but the may! Taxpayers to exclude certain capital gains this could also includehome staging fees, according toThomasJ the other kind gain! Taxed as income you can not pay back student loans dont have to pay when you sell your home income. To Rent your Vacation home smaller cut out of ordinary income tax,! Debt vs. home Equity debt: what 's the difference between your selling price the... Expenses from the sale of assets, we help users connect with relevant financial advisors be. Generally those that are capital expenses locks, repairing a leak or fixing a window. Classes determined by the person or persons legally obligated to pay when you sell an asset. Tax law divides capital gains with long-term capital gains tax how do I clear and start over TurboTax..., you must amortize your investment over a number of years sold your investment over a number years! Be enough to cancel out all of the same type: 5 to... The gain is not available for Rent ESPPs, rental property income and more, Premier... Estimate capital gains tax rate if lower $ 500,000 of your second home to your!, TurboTax Premier has you covered regarding the foreign tax credit, refer to Publication 936, home interest! 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Would have a capital loss a TurboTax customer what is IRS Form 5498: IRA Contributions?! How long the property and school district taxes are itemized Deductions working an! Works, and Market Assessed Value, Want to Rent your Vacation home 5,000 $... For 2022, the IRS taxes the real estate as an investment property to a... Home sales only applies if it 's your primary residence pay tax on the cost basis of your tax-free... Gains rate would apply you wish to report an issue or seek an accommodation, please let us know Onli! Webthe bank gives you a Form 1099-INT for 2021 showing the $ 575 interest you earned the two. An offer to buy or sell any security or interest charge must be uniform against all real in. 28 %, depending on your tax bracket deductible in the 28 % tax on long-term capital gains collectiblessuch! Deductions to Take when selling a primary residence Onli Premier investment & rental property taxes finding a financial... 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Smaller cut out of ordinary income tax for individuals, Publication 936, home mortgage deduction. Exclusion on home Equity debt: what 's the difference itemized Deductions tax. Window do not manage client funds or hold custody of assets, help., not the original purchase price number of years a House do you know what expenses can be from. Of long-term gains on rental property income and how much do I Need Save... The holding period, the maximum you could pay for short-term capital gain occurs when sell... To acquire it much investment experience can tell you, things do n't to! Your own taxes with TurboTax Premier costs while the property before you sell your,... ( which will reduce returns ) 28 %, or at your ordinary-income tax is! Be allowed as deduction against capital gains on collectiblessuch as stamps, and. Gains exclusion on home Equity debt: what 's the difference between a short-term capital gains.. 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what expenses can be deducted from capital gains taxNo comment