My net ordinary income for 2004 from my job was $18,000. I am carrying
over $40,000 in cap losses from the NASDAQ bubble burst. The losses
were from technology stocks (Microsoft, Yahoo, etc). In Jan 2004 I
purchased two residential homes and rented them out to tenants. I sold
the homes in Aug 2004. My net realized gain on the sale of both homes
was $50,000. I want to know if the sale of these two homes is
considered a short term capital gain (taxed at ordinary income rate)
and if so, may I use the long term cap loss from the securities to
offset the short term cap gain on the sale of investment/rental real
property?