|
Posted by packat on July 31, 2007, 3:37 pm
Please log in for more thread options
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?
Thanks,
pcakat.
<< ------------------------------------------------------- >>
<< 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 (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Phil Marti on August 1, 2007, 4:26 pm
Please log in for more thread options
> Question - Can I offset carry over investment lost with new
> gains?
Yes. Each year your loss carryover goes on Schedule D of
the 1040, where it's netted with this year's transactions.
--
Phil Marti
Clarksburg, MD
<< ------------------------------------------------------- >>
<< 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 (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Herb Smith on August 1, 2007, 4:26 pm
Please log in for more thread options
> Question - Can I offset carry over investment lost with new
> gains?
The word is LOSS.
Yes, carryover losses can be used to offset current gains,
as well as up to $3000 of ordinary income.
> 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?
Yes, as explained in your Schedule D instructions.
> 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?
Capital loss carryover has NO time limit (except your life)
for use. If you have no capital gains to offset it, up to
$3000 can be used in any year to offset ordinary income.
<< ------------------------------------------------------- >>
<< 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 (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by joetaxpayer on August 1, 2007, 4:26 pm
Please log in for more thread options 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?
Yes, the loss carries each year until used up. It is used to
offset short term losses, and up to $3,000 of earned income.
You are not forced to use it for long term gains, however,
but you are permitted to do so. The choice is yours, and
depends on your tax bracket, and the rest of the numbers
involved.
JOE
<< ------------------------------------------------------- >>
<< 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 (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Phil Marti on August 2, 2007, 5:46 pm
Please log in for more thread options
> You are not forced to use it for long term gains, however,
> but you are permitted to do so. The choice is yours, and
> depends on your tax bracket, and the rest of the numbers
> involved.
This is incorrect. A loss carried forward goes on Schedule
D, where it's available for application against all capital
gains. There is no choice involved.
--
Phil Marti
Clarksburg, MD
<< ------------------------------------------------------- >>
<< 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 (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
| Similar Threads | Posted | | Re: investment gains / lost | August 2, 2007, 5:46 pm |
| "Lost" Boat | February 6, 2007, 9:20 pm |
| Lost 401K | January 9, 2008, 6:50 pm |
| IRS lost my tax return | July 2, 2006, 10:44 pm |
| Can I deduct a lost RE deposit? | February 17, 2007, 4:58 am |
| Lost participants in 401k/pension plans | November 14, 2007, 12:19 pm |
| Re: Lost deposit on proposed rental purchase | June 6, 2006, 7:10 am |
| Re: Lost deposit on proposed rental purchase | June 12, 2006, 8:40 pm |
| Re: Lost deposit on proposed rental purchase | June 16, 2006, 2:59 am |
| Re: Lost deposit on proposed rental purchase | June 17, 2006, 8:46 pm |
|
|
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap