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I am new to this site, but appreciate all the knowledgeable people who are helping those of us who need it. After 30 years as a retail manager, my store was forced to close in 2001. My wife and I took our life savings and opened our own business. It lost money each year and after 3 1/2 years we closed it. It was an S Corporation and our corporate tax return each year showed losses in excess of $20,000, but we had very little income, so those large losses were never offset with taxable income.

Now three years later, we have sold a fully depreciated rental property and have a long term capital gain of about $25,000. I know that income averaging is no longer allowed except for farmers and fishermen. But, is there any kind of way to take advantage of those large losses three to 5 years ago and use them to offset this gain this year?

Any advice would be appreciated.

Ceegee