Discussion:(Long-Term) Capital loss carryover via 1040x

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Discussion Forum Index --> Tax Questions --> (Long-Term) Capital loss carryover via 1040x

Pudding Man (talk|edits) said:

1 February 2007

Greetings,

My client is retired and has earned little/nothing in recent years. He had a LT cap loss of about 50k in 2003 and didn't declare it.

For 2006 he has about 15k income and 500 cap gain.

As nearly as I can tell, it *should* be practical to effect a cap loss carryforward of 50k from 2003 to present. He will need it in the future when he sells more mutual fund stock.

Q1: Cap loss carryforward of 50k from 2003 is practical?

Q2: Just boilerplate 1040x and attach Sch. D (for 2003, 2004 and 2005) and submit to IRS?

 Thanks,
 Puddin'

Kevinh5 (talk\|edits) said:	1 February 2007
y y

Death&Taxes (talk\|edits) said:	1 February 2007
Q1: what other answer is there? Q2: This is one time I might attach documentation if practical. And send the amendment by Certified Mail, time is fleeting.

Pudding Man (talk|edits) said:

1 February 2007

Thanks. Certified Mail, etc -does- sound advisable.

Forgot to ask: do I have to burn 3k (for each of '03-'05) for years in which he had no tax liability? It sounds strange, but it seemed to be implied in at least one irs pub.

 Puddin'

CATAXES (talk\|edits) said:	1 February 2007
If he has no income you will not "burn" the $3k. It will carry over.

Kevinh5 (talk\|edits) said:	1 February 2007
you have to do the calculation on the carryover, though. CATAXES answer is correct, but it is not the same as the answer to your question.