Capital loss carryover in joint account?

Question

I have capital loss carryover from previous years in my individual trading account.
If I open a joint account with my wife, can i still apply/deduct the old capital loss carryover (from individual a/c) against my profits in my joint a/c ?
or is there any restriction that i can only apply my capital loss carryover against my profits in my individual account?

Answer 1

Yes, you can still deduct the old capital loss carryover from the individual a/c against the profits in the joint a/c. If you and your wife file a joint tax return then the IRS doesn't care where the losses and the profits came from. Even if your wife had profits, you could offset her profits against your loss carryforward, as long as it's a joint return. And if your loss carryforward is more then your profits for the year, you can deduct losses up to $3,000 for the year, and carryforward the remainder if your loss carryforward is more than $3,000.

Answer 2

You could carry it over onto a joint return even if it was from a single return - or onto your joint return whether or not her name is on the investment accout - a joint return is for the income and expenses of each spouse, or both.

The carryover doesn't have to have arisen from the same account as the one where you show the profits you're deducting it against, and your wife's name doesn't have to be on the account.