I have an obscene amount of capital loss carried over over the years, which will probably take my whole life time to offset with any future capital gains, and yet every year I still pay taxes on my interest incomes. Is there anything I can do better?
2007-03-25 15:56:24 · 4 answers · asked by fifty2weekhi 2 in Business & Finance ➔ Taxes ➔ United States
Not really. Just take the $3,000 every year against other income -- that's mandatory by the way -- and hope for a CG windfall someday to use the balance against.
2007-03-25 16:09:00 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
You carrover will be reported on Sch D. It is not related to interest income. As others responded, you can deduct only $3,000 a year. If you sell a lot of stock and have gains. You can offset these gains against your carryover.
2007-03-26 00:15:36 · answer #2 · answered by azchtou 3 · 1⤊ 0⤋
Discuss with your investment advisor how to switch some investments to generate capital gains instead of interest income, which cannot be used to offset capital losses.
You can also investigate investments that generate qualified dividends rather than interest, since qualified dividends are taxed at favorable rates.
2007-03-26 00:24:12 · answer #3 · answered by ninasgramma 7 · 1⤊ 0⤋
No. You can only offset capital losses against capital gains. You are also limited to a yearly write-off of $3,000 of the losses.
2007-03-25 23:26:30 · answer #4 · answered by Anonymous · 0⤊ 2⤋