PLease this is serious I need hoest answers only true help.
1.) True or false
Any unused capital losses may be carried over year after year until they are deducted by the tax payer
2007-02-26 04:23:46 · 7 answers · asked by WillsBroncoGal 3 in Business & Finance ➔ Taxes ➔ United States
Here's my understanding: You can use up to $3000 of capital losses per year to offset other income (salary, interest, etc.). If you have more than $3000 in losses, you use $3000 the first year and carryover the rest to the following year. In the following year, you combine the carried over loss with your capital gains and losses for that year. If that all adds up to a loss of more than $3000, you again use $3000 and carryover the remainder. As far as I know, there's no limit on how many consecutive years you can carry over losses, but hopefully somewhere along the way, you'll have gains so you won't have to!
2007-02-26 04:33:45 · answer #1 · answered by Dave W 6 · 1⤊ 0⤋
True.
There is no limitation as to the length of time an individual can carryover capital losses,
unlike a corporation. You can claim your carryover losses in full towards your capital gains, but the most you can claim each year as a capital loss is $ 3000.
2007-02-26 05:34:07 · answer #2 · answered by bold4bs 4 · 0⤊ 0⤋
Yes, if losses exceed gains plus $3,000.
See INSTRUCTIONS FOR SCHEDULE D:
"You may deduct capital losses up to the amount of your capital gains plus $3,000 ($1,500 if married filing separately). You may be able to use losses that exceed this limit in future years."
"See Pub. 550 to figure the amount of unused capital losses you can carry forward to 2007."
2007-02-26 04:37:12 · answer #3 · answered by Latigo 3 · 1⤊ 0⤋
You can carry your capital losses forward year after year until deducted by the taxpayer. You know of course you can take 3,000 of cap osses every year.
2007-02-26 04:47:07 · answer #4 · answered by Devdude 5 · 0⤊ 0⤋
Not quite true. Anything not used can be carried over, but you have to subtract $3000 each year whether you can use it or not. You can take the $3000 per year against ordinary income, but if you don't have $3K ordinary income, you would lose part of your carryover.
2007-02-26 11:15:50 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
You are limited to $3,000 in capitol loss deductions in any tax year. Any remaining loss must be carried forward to the next tax year.
2007-02-26 05:28:31 · answer #6 · answered by Bostonian In MO 7 · 1⤊ 0⤋
True. At death they die with the taxpayer and do not go to the estate.
2007-02-26 04:39:47 · answer #7 · answered by spicertax 5 · 0⤊ 0⤋