Why not use stock losses to offset capital gains when selling rental property?

[Jack B.]

I researched this a bit after having the thought the other day as I started planning to sell my portfolio slowly over time. I can offset stock capital gains with stock losses. Why not rental property gains?

Basically in a year where I have a 400-500K loss in stock value, I could sell the stocks to realize the loss, sell one rental house and pay no capital gains tax on its 400-500K profit.

But you might be thinking, you still lost 400-500K in the stock market. Sure...but I bought the stocks back after 31 days to avoid the wash sale rule. So I used the loss to offset other taxes, and repurchased the stocks to hold for when they rebound.