Were can I find the simple rules for dealing with Capital Loss Carryovers. I have a loss carryover from last year and some short term losses from this year that exceed $3000. What is the arithmetic for frigurin the NEW loss carryover to 2007?
2007-02-18 04:43:25 · 4 answers · asked by jer 1 in Business & Finance ➔ Taxes ➔ United States
Fill out the schedule D form one line at a time including entering your capital loss carryover. It'll calculate your new carryover if you have too much carryover and not enough losses to use it all this year.
This form is one of the most confusing ones around, I think - but it does acually calculate it right. You can drive yourself crazy trying to figure out why each calculation is the way it is - but it really does come out right in the end.
Have fun, and good luck.
2007-02-18 11:32:29 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Add this years loss to the carryover from last year. Take $3,000 for this year. Carry forward any balance to next year.
2007-02-18 04:51:16 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
smh is correct. You can offset your s/t gains against the l/t loss from last year. It kind of makes me wonder what exactly you're doing, though . . . are you trading stocks, or is this something else? You know, if you're day trading, you might be qualified for different treatment of these gains and losses. I don't want to go into specifics with you if that's not what's happening, but if it is, you may want to do some research to see if you qualify for treatment as a professional trader, rather than investor.
2016-05-24 02:26:37 · answer #3 · answered by Anonymous · 0⤊ 0⤋
When you fill out Schedule D, it should do all this for you.
2007-02-18 05:30:39 · answer #4 · answered by r_kav 4 · 0⤊ 0⤋