If I had a long term loss carry over in 03, very little income in 04 and didn't use the carry over. Can I apply the carryover to 05?
In other words, is it OK to skip a year?
2007-01-26 02:19:54 · 6 answers · asked by zocko 5 in Business & Finance ➔ Taxes ➔ United States
You cannot skip a year when you have a capital loss carryover. File your 2004 return, or amend the return if it was filed, and take the carryover allowable. If there is any carryover left, apply that amount to 2005.
2007-01-26 02:32:43 · answer #1 · answered by ninasgramma 7 · 1⤊ 0⤋
Yes. Your capital loss carryovers are carried over indefinitely until they are fully utilized. However, since capital loss carryovers are "above the line", you will need to take $3,000 of it for 2004. If it generates a NOL (your adjusted gross income is less than zero after deducting the $3,000 capital loss), then the NOL can be carried back to 2003 and trigger an additional refund. You can carry back a NOL up to three years, and any leftover NOL is then carried forward until it is used. You can also elect to forego the carryback and just carry it forward.
2007-01-26 05:52:08 · answer #2 · answered by jseah114 6 · 0⤊ 0⤋
Technically, you deduct up to $3,000 of your loss, but your carryover to the following year can include part of the allowed loss. Your allowed capital loss carryover is your total capital loss less the the lesser of :
(1) The capital loss you are allowed to deduct, and
(2) Your taxable income increased by your allowed capital loss deduction and the deduction for your personal exemptions.
So, if your AGI (adding back your capital loss deduction) is less than your standard deduction, you can carry forward the entire loss.
2007-01-26 03:50:03 · answer #3 · answered by NotEasilyFooled 5 · 0⤊ 0⤋
Technically, you will be able to desire to do the capital loss carryforward worksheet interior the schedule D training. yet once you particularly purely had $2500 in earnings, you purely used up $2500 of the loss and the relax volume is carried over to line 6 or line 14.
2016-11-01 08:27:49 · answer #4 · answered by ? 4 · 0⤊ 0⤋
No, you can't just skip a year. The $3000 comes off of your carryover each year even if you can't use it, and even if you don't have to file.
2007-01-26 05:15:36 · answer #5 · answered by Judy 7 · 0⤊ 1⤋
No.
Even in years where you get no tax benefit, you must use the $3000 as a "deduction".
2007-01-26 02:34:27 · answer #6 · answered by Wayne Z 7 · 0⤊ 0⤋