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I am the 77 year old owner of a Technology Fund, which I plan on selling shortly at quite a large loss. I know that I can write off $3000 of the loss against income on my 2004 income tax. However, that would still leave some additional loss to be written off on the 2005 tax.

The question I have pertains to the fact that my two sons are co-owners along with me of this Fund. In the event of my death prior to having written off the remaining loss, would my sons, as co-owners, be able to take the remaining write-off when the time comes??

No. Assuming you are equal co-owners of the fund, each of you will report 1/3 of the loss on your 2004 tax return where it will be offset against any capital gains and then $3000 excess loss will be applied against other income. From then on, each of you tracks your own carryforward loss until it is used up. Your sons cannot use any of your loss that remains after your death.

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