Last year, I read everywhere online that if you have capital gains on a house, you can offset it on your taxes with capital losses on stocks. Well, we recently sold a house on a loss, and made a lot of money on stocks. We thought that the reverse was true, that we could offset the capital losses on the house with capital gains on stocks. We asked a professional who also said we could.
However, now that we are filling out our taxes, it appears that it isn't true. Our idea only works if the real estate in question is not where you live, but just owned. So now, we are 40k in the hole on our taxes. Is there anything we can do to ease the damage?