Question about recording keeping for captial loss carryovers from years past stock losses?

Question

In 1999 2000 and 2001 I had about 100k in capital loss due to losses in the stock market. I have been carrying over that amount each year to this day and deducting the allowed 3000 from that balance each year from my income tax which is allowed by IRS. I know people say you should keep your tax records including 1099 etc for at least 3 years but since I will be probably carrying this amount over for the next 20 years do I need to keep these records from my brokerage for that amount? If not, how does the IRS verify that my carryover amount is correct? Simply by looking at the pattern of my previous 1040 schedule D's? Please help!

I'm thinking maybe I need to keep those stock sale records that show my losses until 3 years AFTER my last deduction from the 100k? In other words I may need to keep those records for 23 years? Makes sense?

Answer 1

the tax records supporting your return should be kept six years. The copies of the tax returns should be kept indefinitely.
Keep tax records six years. There is a three year statute of limitations for a normal audit, but there is a six year statute for substantial understatement of income.

Answer 2

Keep the records but cut the time down by buying Mutual Funds & close end investment companies now when no 1 else should. You will get hit with the YE capital gains distributions but you won't have to pay taxes like others as will just knock down your carryover. Plenty of options to here. [e-mail] ADX PEO & others

Answer 3

because you probably did not record it wisely. in case you impressive record the sale, consisting of the quantity that the inventory value you, the quantity for that you bought it, and the quantity of the loss, then there's no tax. besides the undeniable fact that, in case you fail to record the transaction, then you owe an similar tax as in case you had gotten the inventory for loose and all the money you received for it were positive aspects. you aren't getting credit for what the inventory value you except you record it. If the IRS has to calculate it, then each and every thing you received counts as a income.