Discussion:Long term loss carryover question...
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Discussion Forum Index --> Tax Questions --> Long term loss carryover question...
| 12 May 2006 | |
| Taxpayer has a very large long-term loss carryforward (six figures). He has been using the max amount allowable every year, but has had no capital gains against which to use up more of the loss.
He anticipates a sizeable gain in a few years, but the loss was incurred many years ago. Is there a time after which the ability to use long term losses to offset gains expires or do the losses remain available indefinitely? | |
Machster179 (talk|edits) said: | 12 May 2006 |
| If the question is dealing with capital loss carryforward, my understanding is you can use 3000 of the Capital loss per year until its used up or applied to Capital Gains. | |
Chautauqua (talk|edits) said: | 12 May 2006 |
| Until death....... | |
| 12 May 2006 | |
| There is no limit to the number of years that you can carryforward a capital loss but, (as Chatauqua points out) if the taxpayer dies, the carryforward disappears. It can't even be used by the decedent's estate. | |
| 12 May 2006 | |
| Dang, you can't even take cap loss c/f's with you? Hey, maybe you can, and that is why they disappear at death!? | |
Cmccarthy1 (talk|edits) said: | 11 May 2008 |
| I had H&R Block do my personal taxes this year. I had a carry-over loss from 2006 of $4,080, and they used all of it to offset my capital gains for this year. I thought that there was a $3K limit on the carry forward capital gains loss. Has this changed or do I not understand how the $3K limit applies? Can you carry forward any amnunt of loss until you've got a capital gains loss for the current tax year of up to $3K? | |
| May 11, 2008 | |
| You can offset any amount of capital gain with a like amount of capital loss carryover.
However, you may also offset $3000 of ordinary income with capital loss carryover beyond any capital gains offset by loss carried forward. | |
| 12 May 2008 | |
| Just for clarification if this was a joint brokerage account and one spouse dies the surviving spouse may be entitled to 1/2 of the capital loss carry forward. State ownership laws will determine who owns the loss and to what percentage if any. Section 1212(b)(1) | |
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