Capital Gains/Losses Adjustment?

Question

1) I had realized 2006 capital gains of $38,000 on which I paid taxes on my returns in 2007.

2) I currently have $40,000 of unrealized losses in 2007 (including Long Term & Short Term)

When I file my tax returns for 2007, can I in effect, wipe out the $38,000 gains that I was taxed for in 2008 when I file my taxes for 2007 in 2008?

Please let me know...

thanks!
Pick

Thanks for the answer. The case I was talking about was if I realize the unrealized losses ($40,000) in 2007, will I be able to get a refund of most of the tax I paid on the realized gains in 2006?

Answer 1

No, as Judy already said.
If you want to sell enough to realize a $3000 loss, that will reduce your other taxable income. However, don't sell just for that reason. Sell only if you don't think those investments will do well in the future.

Answer 2

No. 2006 is done, and only realized gains and losses that were realized in 2006 have any effect on your 2006 return.

UNrealized gains and losses have no effect on your taxes anyway, and you don't show them on your return until you realize them by selling the items.

Answer 3

Capital benefit or Loss is calculated with here reasoning. you purchase the living house & 195,000.00. From that quantity you subtract depreciation by way of the years. think the living house has been depreciated on a without delay line twenty years and amassed depreciation is $ a million,000.00. So, the preliminary investment 0f 195,000.00 much less the a million,000.00 depreciation is $ 194,000.00. Now, in case you sell the living house greater effective than $194,000.00, then that's a benefit. in case you sell the living house decrease than $ 194,000.00 then that's a loss.