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Financial Planning / Tax Strategies


Subject:  Re: Matching Gains to Losses Date:  4/9/1999  2:14 PM
Author:  Bob78164 Number:  14185 of 127617

vkmath writes:

I have LT gains, ST Gains, ST Losses and a loss carry foward from the previous tax year as listed below:

LT Gains: $14,000
ST Gains: $ 1,200
ST Loss: $ 4,000
Tax Loss carry foward: $4,100

How do I net my losses against the two different types of gains? How is the carry foward applied and can it all be used this year?

I reply:

Schedule D will walk you through the process. Based on the numbers you gave, you have a net short term loss of $2,800 and a net long term gain of $14,000. You will net the short term loss against the long term gain for a net capital gain of $11,200. You will apply the entire carry forward of $4100 to this gain, leaving you a taxable long term capital gain of $7100. Hope this helps. --Bob
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