Hi, there,

I have two questions, which I need your advice. I invested $60K on my account with Datek during last June, and I totally lost $50K by the end of 1999, which are the results of several hundreds stock trading. That means I have realized the loss.

My questions are:
1. how should I fill the tax return for 1999 because the money I lost is really big, I recalled some Website mentioned "if your losses exceed $3000 (or $$1500 if you file married/seperate), you must carry over (but not back) those losses into the year 2000". what's that mean?

2. If during this year (2000), I get some gains, but not exceed the money which I originally invested ($60K), should I pay tax for these gains? My understanding is that before I get all of my original investment ($60K) back, I don't need pay any tax. For
example, by the end of 2000, my account increase from $10K now to , let's say, $45K (but still less $60K), I don't need pay tax for $45K-$10K=$35K gains, is
that correct?

Thank you very much for your advice.

FX