I have 56,680 long term capital loss carryover from last year. I have 34,000 in short term gain can I apply this "long term capital carryover to this years short term gain?
2007-03-09 09:30:35 · 5 answers · asked by Ski_Bum 3 in Business & Finance ➔ Taxes ➔ United States
I know the net amount cannot exceed a loss of 3000 however you can apply more to the gains right? The issue is between long and short term
2007-03-09 09:36:43 · update #1
Yes you may. Any remaining loss carryforward, after subtracting the current year's gain and the 3,000 your allowed to offset other income the remaining loss will not change it's character as long term.
2007-03-09 09:35:40 · answer #1 · answered by smh60437 3 · 1⤊ 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.
2007-03-09 09:46:45 · answer #2 · answered by SuzeY 5 · 0⤊ 0⤋
Your capital loss carryover to 2007 would be a long term loss carryforward of 22670
2007-03-09 10:08:37 · answer #3 · answered by sebrofs 1 · 0⤊ 1⤋
The carryover amount will be reduced by this year's gain, leaving $22,680 and no tax on this year's gain. You can use $3,000 of that to offset other income and will have $19,680 in loss to carry forward to future years.
2007-03-09 10:00:35 · answer #4 · answered by Bostonian In MO 7 · 2⤊ 0⤋
No. There is a $3,000 limit.
2007-03-09 09:33:43 · answer #5 · answered by regerugged 7 · 0⤊ 3⤋