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Posted by jack on September 4, 2008, 12:40 am
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As I understand it...
If I have $100,000 in capital losses this year I can apply $3,000 against
other income and carry $97,000 forward.
If I have a gain of $20,000 next year, I apply $20,000 against the gain,
$3,000 against other income, and carry $74,000 to the next year.
Is that about right?
Does it matter whether the $100,000 loss or the $20,000 gain are long or
short term?
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Posted by Arthur Kamlet on September 4, 2008, 12:59 am
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>As I understand it...
>If I have $100,000 in capital losses this year I can apply $3,000 against
>other income and carry $97,000 forward.
>If I have a gain of $20,000 next year, I apply $20,000 against the gain,
>$3,000 against other income, and carry $74,000 to the next year.
>
>Is that about right?
By George, I think you've got it!
>Does it matter whether the $100,000 loss or the $20,000 gain are long or
>short term?
The loss carry forward is allocated to short term and long term
(and could just be one of those) using the worksheet provided to
calculate the loss carryforward.
Then the short term gains and losses are combined. And the long term
gains and losses are combined. Then the net short term and net long
term figures are combined.
If the result is a loss, the maximum of 3000 loss goes to form 1040
line 13. There it reduces taxable income. Chances are the remaining
loss is carried forward.
But there are situations where the capital loss worksheet will
show you that the carryforward loss has not been reduced by the
full 3000 amount even though 3000 loss transferred to form 1040 line 13.
That happens, for example, when the itemized or standard deduction
exceeds adjusted gross income.
--
ArtKamlet at a o l dot c o m Columbus OH K2PZH
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Stuart Bronstein on September 4, 2008, 2:21 am
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kamlet@panix.com (Arthur Kamlet) wrote:
>>As I understand it...
>>If I have $100,000 in capital losses this year I can apply $3,000
>>against other income and carry $97,000 forward.
>>If I have a gain of $20,000 next year, I apply $20,000 against the
>>gain, $3,000 against other income, and carry $74,000 to the next
>>year.
>>
>>Is that about right?
>
> By George, I think you've got it!
Doesn't the gain over $3000 have to be a capital gain to be offset
against capital losses?
Stu
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Harlan Lunsford on September 4, 2008, 3:14 pm
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Stuart Bronstein wrote:
> kamlet@panix.com (Arthur Kamlet) wrote:
>
>>> As I understand it...
>>> If I have $100,000 in capital losses this year I can apply $3,000
>>> against other income and carry $97,000 forward.
>>> If I have a gain of $20,000 next year, I apply $20,000 against the
>>> gain, $3,000 against other income, and carry $74,000 to the next
>>> year.
>>>
>>> Is that about right?
>> By George, I think you've got it!
>
> Doesn't the gain over $3000 have to be a capital gain to be offset
> against capital losses?
First, yes. Then on to page one of 1040.
ChEAr$,
Harlan
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Arthur Kamlet on September 4, 2008, 3:15 pm
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>kamlet@panix.com (Arthur Kamlet) wrote:
>
>>>As I understand it...
>>>If I have $100,000 in capital losses this year I can apply $3,000
>>>against other income and carry $97,000 forward.
>>>If I have a gain of $20,000 next year, I apply $20,000 against the
>>>gain, $3,000 against other income, and carry $74,000 to the next
>>>year.
>>>
>>>Is that about right?
>>
>> By George, I think you've got it!
>
>Doesn't the gain over $3000 have to be a capital gain to be offset
>against capital losses?
Sure. Assumed in my answer. Didn't you know what I was thinking :^)
--
ArtKamlet at a o l dot c o m Columbus OH K2PZH
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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