Can I carry it forward in 2004 or do I have to amend my 2003 return? I had no income in 2003. That's why I didnt use it. Yeah, I'm filing late!
2006-10-29 05:30:51 · 5 answers · asked by Debbie P 2 in Business & Finance ➔ Taxes ➔ United States
The capital loss carryover is use-it-or-lose it as far as claiming it the following year, or skipping a year. If you have more than the allowable loss of $3000 in a year, you can carry it from year to year, but your carryover is reduced each year by the amount allowed whether or not you claim it.
Basically, on your 2003 return you should have matched any long term carryover against any new long term gains and netted them out - same with short term - and deducted up to the allowable amount. Anything over that could carry over to 2004.... etc. If you don't have applicable gains in any year, the carryover up to the limit can be used against ordinary income.
So yes, if it benefits you, amend your 2003 return. And you know you're running out of time to receive any refund due.
2006-10-29 05:55:53 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
If you had no, as in zero, income in 2003 I see very little reason to file a 2003 return unless you already did. If you did not file in 2003 there is nothing to amend. In some cases the IRS will make you file a return for each year if you are behind but that will have no impact on your capital loss carry over in 2004. If I were doing your returns I would do the 2004 and 2005 returns asap and use the carry over from 2002 in 2004 in combination with any loss or gain for that year. As the maximum loss that can be used is $3,000 per year you would repeat that process until the 2002 loss is used up.
2006-10-29 11:28:22 · answer #2 · answered by ? 6 · 2⤊ 0⤋
I would amend your return for 2003 using a 1040x its not that hard so you might as well do it. As for your losses you can deduct a maximum of 3000 or 1500 if married filing separately. And what the first guy said is wrong you can deduct capital losses indefinitely until you exhausted the loss. Also your losses will be applied first to your long term gains and then to your short term.
2006-10-29 05:48:13 · answer #3 · answered by Ski_Bum 3 · 1⤊ 0⤋
If you had filed you may have got money back anyway. You should still be allowed to use the tax loss. Check with a knowledgeable tax advisor.
2006-10-29 05:36:08 · answer #4 · answered by READER 1 5 · 0⤊ 1⤋
You can carry it over for up to three consecutive years; however, short term losses must be applied to short term gains and long term losses must be applied to long term gains.
http://www.fairmark.com/capgain/carryover2004.htm
2006-10-29 05:34:32 · answer #5 · answered by Gremlin 2 · 0⤊ 3⤋