When to realize capital loss
I invested in a private REIT a few years ago and it went poorly. They are returning 10% of the principal. It shows up in my online account, but they have not allowed access to the funds. If I get the money in 2025, could I then use the other 90% as a capital loss on that year's taxes? Is it possible to start to realize the loss on 2024 taxes?
Thanks
Most Popular Reply
Based on the information provided, you can only claim a capital loss when you actually sell or dispose of your REIT investment, not when the REIT simply returns a portion of your principal.
Since you haven't received the funds yet, you cannot claim any loss for 2024.If you receive the 10% return of principal in 2025 and the investment is officially terminated or sold at that time, you could potentially claim a capital loss for the remaining 90% on your 2025 taxes.
The capital loss would be calculated as the difference between your original investment amount and the amount you received back (in this case, 10% of your principal).