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Posted by Herb Smith on August 2, 2007, 5:46 pm
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> packat wrote:
>> Question - Can I offset carry over investment lost with new
>> gains?
>
>> I sold stocks at big lost in tax year 2000. Base on the
>> 2006 tax return, I still have carry over lost around 50K.
>
>> If I make some profit this year, say 20K. Can I offset this
>> 20K from the carry over lost?
>
>> If not, is there anythign I can do to make the best of this
>> carry over ? And does carry over lost have any time limit,
>> or it will carry over indefinitely until it is used up?
> Of course. You can deduct capital losses up to $3,000 per
> year against ordinary income. If you have $50k of carryover
> losses left, and you have capital gains of $20k, you can
> take that $20k against the $50k of carryover losses, and
> carry the remaining $30k forward.
Actually, the net carryover loss will be $27k. ($50k - $20k
- $3k) = $27k
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