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My daughter has an interesting problem. She graduated from college in 2009, so her college trust had taken a hit and she has (stock) capital losses to carry forward. But in 2010, she was a volunteer in Namibia (World Teach). She does not need to file taxes for 2010. Can she simply carry over her capital losses to 2011 without filing?

No. She needs to file a 2010 to establish the capital loss carryforward to 2011. On the front of the 1040 it will look like she is claiming a $3000 loss (or her total loss if less than $3000), but when she completes the capital loss carryforward worksheet, she will carry the full loss forward.

Ira
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