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Financial Planning / Tax Strategies


Subject:  Re: Matching Gains to Losses Date:  4/11/1999  11:19 PM
Author:  TMFTaxes Number:  14417 of 127747

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

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?]]

The first thing that you have to do is determine if your loss carryforward is short term or long should have been identified from your prior year return.

Then you first offset your short term gains and losses

Then your long term gains and losses

Then you net out the answer that you received in the first two steps.

The instructions for Sch D and the form itself should help you with this "netting".

TMF Taxes

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