Message Font: Serif | Sans-Serif
No. of Recommendations: 0
<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.

Carl Erikson
Print the post  


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.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.