The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Simple Question...||Date: 11/8/1999 10:22 PM|
|Author: CarlErikson||Number: 20725 of 122998|
<I had heard that you cannot write off more than 3K in losses against gains. Seems absolutely ridiculous.
So, I would like to ask the question of the distinguished members of this board...
If I have taken $12,000 in losses this year and I have $20,000 in gains (all positions bought and sold already - does not include current holdings): What are my options?>
I believe the rule is that you cannot write off more than 3K in total capital losses. Therefore, you can use all of your 12K losses against your 20K losses and report 8K in capital gains. You would only have a problem if you had less than 9K in capital gains - therefore your total capital losses would be more than 3K and you could not report them all. I believe you can carry over these losses into future tax years.
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