An investor who recently sold a rental property at a $75,000 loss is urgently seeking advice on how to manage the tax implications. With the tax year closing, they are considering purchasing another rental property to offset the capital loss, even if it requires adding $20,000 from their savings.
The investor previously used a 1031 exchange to reinvest $800,000 after selling an initial property. Now, they are looking for expert opinions on the best strategy to navigate this tax situation, as their CPA has been slow to respond.
‘I’m Running Out of Time’: Investor Sells Rental Property at $75,000 Loss, Seeks Advice on Avoiding Taxes
‘My CPA Hasn’t Responded’
Updated Aug. 22, 2026, 12:00 p.m. ET
“To purchase the replacement property, I would need to add $20,000 from my savings.” (Photo subject is a model.) - Getty Images/iStockphoto
Dear Quentin,
I have a certified public accountant who will advise me, but I’m also interested in other opinions.
In 2002, I purchased a rental property for $300,000. During the time I owned it, I paid off the mortgage. In 2022, I sold the property for a net of $800,000 and used the proceeds to buy two other rental properties through a 1031 exchange — one for $500,000 and one for $300,000.
I’m now facing a new quandary. I recently sold another rental property, this time at a significant loss of $75,000. I'm concerned about the capital gains tax implications and am feeling the pressure to act quickly.
My CPA hasn't gotten back to me, and I'm wondering if I should immediately purchase another rental property to offset this capital loss. My worry is that I'm running out of time to make a strategic move before the tax year closes. To purchase a replacement property, I would need to add $20,000 from my savings.
What are my options for mitigating the tax burden from this $75,000 loss? Should I seize this opportunity to reinvest, or are there other strategies I should consider?
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