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Author: LiLNipsFatal Two stars, 250 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 122328  
Subject: Capital Loss Carryover Date: 4/12/2010 1:46 AM
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I know this has probably been answered before, but I can't seem to find a clear answer to my question. In 2008, I had a short-term net capital loss of $2,942 and a long term net capital loss off $3,491 for a total loss of $6433. On line 21 of last year's return, I deducted $3,000 and carried $3,433 into this year's return.

This year I had $458 of short term gains and $4017.20 long term gains for a total of $4,475. On line 14 (long-term capital loss carryover) of this year's return, am I allowed to carry over the entire $3,433 from last year's return to offset my gains? I thought I was only allowed to deduct $3K but maybe that's only when you LOSE more than $3K, not when you're offsetting gains.

Note: I used TurboTax and the $3,433 populated on it's own. It then takes the full $3,433 out of the $4017 long-term capital gains I earned and comes up with a net long-term capital gain of $584. And finally it adds line 7 (my short term capital gain of $458) and 15 (my long-term capital gain of $584) and gets $1,042 for line 16.

Is this correct? Thanks for any help you can provide!!!!
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