If you report depreciation each year and if your total operation loss exceeds allowed level for your income, the balance is carried over to the next year and you should include this in the tax return.
So, say over the years you accumulated 70k losses. When you sell your house, you have the profit plus recaptured depreciation of 100k you need to report as LTCG, this you can not use the accumulated 70k to cancel. Instead, you still report the maximum allowed operational loss in a separate entry in your tax return as previous years. This will probably take a few years for you to exaust the total amount of 70k.
有个房子，买42万，十年后卖45万。每年大概一般的收支相抵，加上depreciation以后就是负的。
十年大概depreciate 7万。
因为我不是professional，没有take deduction，所以十年房子accrued 7万loss。
房子本身adjusted basis变成42-7=35万。
卖房子的时候，我的capital gain是45-35=10万，到我的schedule D上，和我以前股票亏的long term capital loss抵消了。
然后那7万积攒下来的loss跑到1040上和我的w2收入冲抵，导致最后IRS要退不少钱给我。
这样对吗？我一直以为recapture的意思是那七万的capital gain会被当作normal income处理
buy 42wan, sell 45wan (disregard expenses) capital gain 3wan, add 7wan recaptured depreciation total long term capital gain 10 wan.
LTCG can offset LTCL from previous years 10wan, that's it, you still have to pay taxes for earned income.
我每年在depreciate以前是收支平衡的，加上depreciate就都是loss了。没有take deductible, 都攒着。
所以一共正好攒了7万loss
the depreciation occurred.
所以depreciation不能take deductible。
就一直accrue
If you report depreciation each year and if your total operation loss exceeds allowed level for your income, the balance is carried over to the next year and you should include this in the tax return.
So, say over the years you accumulated 70k losses. When you sell your house, you have the profit plus recaptured depreciation of 100k you need to report as LTCG, this you can not use the accumulated 70k to cancel. Instead, you still report the maximum allowed operational loss in a separate entry in your tax return as previous years. This will probably take a few years for you to exaust the total amount of 70k.
Doesn't seem that it will take years to exhaust.
Instead I will get a big refund from IRS this year.
(I do have a substantial W2 which results in a substantial AGI)
楼主：
1）有10万的总利润， 其中7万的Unrecaptured Section 1250 Gain（通常所说的depreciation recapture），3 万的long term capital gain
2）还有7万的passive Loss carryover(or carry forward) from previous years。
最后一项的7万是肯定可以抵消掉的， 与收入无关，只是我不确定是先抵消recapture，还是先抵消capital gain。
卖房子的long term capital gain 可以offset 股票的long term capital loss.
each year. If she couldn't do it previously, she can not do it this year neither.
楼主：
1）有10万的总利润， 其中7万的Unrecaptured Section 1250 Gain（通常所说的depreciation recapture），3 万的long term capital gain
2）还有7万的passive Loss carryover(or carry forward) from previous years。
最后一项的7万是肯定可以抵消掉的， 与收入无关，只是我不确定是先抵消recapture，还是先抵消capital gain。
剩下3万offset 股票的Loss，也就是说你offset了全部10万利润， 感觉是靠谱的。
然后七万carry forward loss拿去抵我的W2, 导致我要拿几万钱回来。感觉不对。
我们当年跟你一样不懂，和turbo tax的专家打了好几个电话才悟出来。你不懂就算了，人家不会跟你把话说白的。
在卖房 的那一年all the suspended passive loss from previous year都会被released. 先用来offset passive gain.
所以在楼主的例子里，70k passive loss offset 100k gain to get 30k long term capital gain, then offset long term capital loss from previous year stock loss....
这不是一个recapture 的问题，这是一个suspended passive loss released at selling year 的问题
如果是出租房，你可以看看pub 925 和 form 8582,看看上面的邏輯關係
你前几年的unallowed (suspended) loss 7万来抵充。 剩下的3万利润可以抵剩下的炒股亏损（如果是长期的）
没有recapture 的问题。 也不涉及到主动收入（因为你以前租房就不是主业）
以上是我的理解