I need to know whether there are new rules on offsetting a long term loss with long term gains.Specifically, I have a long term loss from holding an asset more than 18 months. In order to offset this loss must I hold assets with gains for 18 months or does the new law permit me to offset it by holding for the traditional 12 month period? TIA
[[I need to know whether there are new rules on offsetting a long term loss with long term gains. Specifically, I have a long term loss from holding an asset more than 18 months. In order to offset this loss must I hold assets with gains for 18 months or does the new law permit me to offset it by holding for the traditional 12 month period? TIA]]In effect, you DO have to offset 28% assets and 20% gain assets. But that is done automatically on the Schedule D.But you do NOT have to wait 18 months in order to offset a gain with a loss. If you have an 18 month gain, you can offset it with a 12 month loss...or even a short term loss. All of the gains and losses are netted out before they get to the "bottom line" of the Schedule D. Check out the Schedule D and instructions for additional information.TMF TaxesRoySPECIAL NOTE: I try to answer as many questions as I can each week, and I generally select those that have not been asked before. If you don't get a detailed answer to your question, it is probably because my time is so limited during tax season, or because it has already been asked and answered in this folder in the past, or because it has been discussed in the Taxes Frequently Asked Questions area. In order to visit the Taxes FAQ area, go to the Fool's School area (http://www.fool.com/school.htm) and check out "Other Features" in the list box, OR you can jump directly to the Taxes FAQ area (http://www.fool.com/school/taxes/taxes.htm). Additionally, if any references were made to the IRS Web Site, you can get there by pointing your web browser to (http://www.irs.ustreas.gov)
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