Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121114  
Subject: Re: Capital Loss Carryover Date: 4/12/2010 2:15 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
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.


You misunderstood the $3,000 limitation, which applies only to the amount carried to line 13 of the 1040. The full amount of your capital loss carryover from 2008 comes to your 2009 Schedule D. Since your 2008 short-term loss was less than $3,000 your entire carryover to 2009 is long-term. You'll see this if you dig up your 2008 return and look at the carryover worksheet.

Phil
Rule Your Retirement Home Fool
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Post of the Day:
Berkshire Hathaway

Starting a Small Business
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement