Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
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?
Print the post Back To Top
No. of Recommendations: 2
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
Print the post Back To Top
No. of Recommendations: 0
Read the rules carefully. Depending on her "reportable"income she might use less than the 3000. It can be tricky.
Print the post Back To Top
No. of Recommendations: 1
Read the rules carefully. Depending on her "reportable"income she might use less than the 3000. It can be tricky.

That's what I was saying. She shows the full $3000 loss on line 13 whether she needs it or not. The capital loss carryover worksheet will determine how much is actually used.

Ira
Print the post Back To Top
No. of Recommendations: 0
irasmilo and bookie71 are both correct. You must file to get the carryover, and you must prepare the worksheet to calculate the carryover.

Of course, if you use tax prep software to prepare the return, it will compute the carryover automatically (hint).

I have clients whose only reason for filing is to keep the carryovers rolling, sometimes for many years in the case of children.
Print the post Back To Top
No. of Recommendations: 0
Thank You!
Print the post Back To Top