Offset capital gains on land

[Lauren Johnson]

I am in the process of selling two vacant residential lots that will result in a long term gain of about $120k total.

I do have a passive loss carryover from last year for a self storage investment. Can I use that loss to offset the capital gains on these lots?

I am familiar with the concept of the lazy 1031 exchange, but don’t know if that applies to vacant land held and sold for appreciation with no other cash flow.

[Joseph Palmiero]

Unfortunately you cannot offset your gain with the passive losses.  Land held for investment is considered to be nonpassive.