Tech stocks killed me in 2000 and 2001. But it seems at the rate of $3000/year in deductible losses, it will take me a lifetime to offset the losses to my income that I should have been able to take the first year. Are there any tricks or ways to take my losses now without having to spread them out at $3000 a year.
2007-03-11 05:21:16 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
There is no secret answer here. You can carry the loss forward forever, but what you really need is to create capital gains. Don't let this situation be the driving force behind your future investment strategy, but keep it in mind.
2007-03-11 05:41:34 · answer #1 · answered by jrtcpa@sbcglobal.net 2 · 1⤊ 0⤋
The best way to deduct losses is to have gains. If you have 30,000 in gains from the sale of investments you can deduct $30,000 in losses. Generally, realized capital losses are first offset against realized capital gains.
2007-03-11 13:46:33 · answer #2 · answered by KLM45 1 · 1⤊ 0⤋
If you have captal gains in the current year, you can net them out from the loss carryover, in ADDITION to taking the $3000 a year against ordinary income. Otherwise, no, $3K a year is the limit.
2007-03-11 12:58:07 · answer #3 · answered by Judy 7 · 2⤊ 0⤋
You can offset any capital gains using your losses, as well as taking the $3000 per year.
So you will pay no capital gains taxes for the rest of your life. That's good, isn't it? :-)
2007-03-11 12:27:48 · answer #4 · answered by Lisa A 7 · 1⤊ 1⤋
You can use them to offset new capital gains.
2007-03-11 12:28:41 · answer #5 · answered by Anonymous · 1⤊ 0⤋
I'd fire your broker for starters.
2007-03-11 12:28:56 · answer #6 · answered by greenbuddha03 3 · 0⤊ 0⤋