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Author: nml Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Amend or Remember Date: 4/10/2010 2:19 AM
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Yeah, I'm to stupid to use TT...and tired too...but I need some guidance, so thanks in advance to any who try to help me..

Background...

I've been carrying Long Term Capital Losses forward for about 8 years (thanks to the 2000-2001 market and my poor investing/trading skills)....this year I made a couple of trades that qualified for short term losses....recorded them in Schedule D and went on....

Somehow I didn't record my previous Long Term Carry Over Losses...I missed the darn blank....I know, I should have been smart enough to print the darn preliminary, look over it and compare to previous years.. BEFORE I submitted it, but I wasn't.

There was a place in TT that asked me if I wanted to print the preliminary, but then followed that up with the suggestion that I didn't need to...So, I went on and filed....(all laughing accepted at this point, I feel bad enough already)..Anyway...

(AFTER I e-filed tonight)... I start looking over the printout/pdf of my return....when I get to the 'Capital Loss Carryover Worksheet..(that fills in the Schedule D) I see I've lost all my 'Long Term Capital loss carryover to 2010'.

In other words, my sheet now says I have no more Long Term Capital Losses..the only Loss I get to carry over to 2010 is the short term losses from the above trades...

I know I should have been more timely and obviously more careful with my return, but what's done is done......

So my question...do I need to amend the return (I get a refund from both the Feds and the State) or is this something that only affects me for next year...ie, I had great Long Term Capital losses that were decreasing by $3000/year...and now I have nothing..

I'll try to muddle through anything any questions now that I've botched up the above description...

thanks for any help / suggestions..

Mick
(the tax idiot)
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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 110054 of 121219
Subject: Re: Amend or Remember Date: 4/10/2010 2:25 AM
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Wait two weeks to make sure that your submitted return has cleared the IRS system and then prepare an amended return. None of the numbers on the return will change. Attach a corrected Schedule D. In the explanation section, state that you're filing an amended return to establish the correct amount of capital loss carryforward from 2009 to 2010.

Ira

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Author: nml Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 110055 of 121219
Subject: Re: Amend or Remember Date: 4/10/2010 2:28 AM
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Man, thanks Ira... I really hate it when I try so hard and still manage to mess things up..

Mick

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Author: CheersSRX One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 110058 of 121219
Subject: Re: Amend or Remember Date: 4/10/2010 1:14 PM
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Ira --

You say that none of the numbers on the return will change. But as long as Mick is going to go through the trouble of filing an amended return, why wouldn't he make the correction, and let it have the impact it's going to have -- presumably giving Mick a larger refund.

Cheers

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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 110059 of 121219
Subject: Re: Amend or Remember Date: 4/10/2010 1:27 PM
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You say that none of the numbers on the return will change. But as long as Mick is going to go through the trouble of filing an amended return, why wouldn't he make the correction, and let it have the impact it's going to have -- presumably giving Mick a larger refund.

You misunderstood my post. Normally, you file an amended return when your tax liability changes. That is, you owe additional tax or are entitled to some money back. In the OP's situation, he took the full $3000 capital loss on his 2009 return, so including the long-term capital losses which he omitted from the original return won't change anything for 2009.

However, if he wants to use those carryforward losses in 2010, he must establish them on his 2009 return. So, he files the amended return with a corrected Schedule D. The numbers on the amended return won't change because there are very few numbers on the 1040X itself (perhaps you've never seen the form). The only change will be on the attached Schedule D.

I hope this makes things clearer.

Ira

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Author: CheersSRX One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 110063 of 121219
Subject: Re: Amend or Remember Date: 4/10/2010 6:25 PM
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Ira, I went back to the original post, and I don't see where he said he had any long term loss in 2009 or used any of the carryforward.

He did have short-term losses. If you have more than $3,000 in short-term losses, do you not get to take your $3,000 long-term carryforward?

Cheers

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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 110067 of 121219
Subject: Re: Amend or Remember Date: 4/10/2010 10:37 PM
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Ira, I went back to the original post, and I don't see where he said he had any long term loss in 2009 or used any of the carryforward.

He did have short-term losses. If you have more than $3,000 in short-term losses, do you not get to take your $3,000 long-term carryforward?


In the original post he stated he had more than $3000 in short term losses. ("In other words, my sheet now says I have no more Long Term Capital Losses..the only Loss I get to carry over to 2010 is the short term losses from the above trades...")

You don't get to take $3000 each of short and long term losses in a given year, only $3000 total. The omission of the long-term carryforward had no impact on the filed return, only on future returns.

Filing an amended return won't change the 2009 return, but will restore the long-term carryforward losses for future years.

Ira

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Author: nml Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 110074 of 121219
Subject: Re: Amend or Remember Date: 4/11/2010 12:05 PM
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in the original post he stated he had more than $3000 in short term losses.

Dead on...So many thanks Ira....I went back to look through TT and I realize what threw me.....

When filling out the Schedule D, there is a pop up that says "You don't need to print your return now as you will have time to do that in a few screens...".

That's all fine and good, but then you better find the link to print for review before it leads you into 'Filing'....and like a real fool, I missed it....

I'll give'r a week and then do my first ever amended return (age 52)...you'd think by now I'd know more about taxes than I do..then again, you'd think I'd know more about investing than I do...

Again, I appreciate your advice...

Mick

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