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#1
12-04-2003, 05:30 AM
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 Re: Capital Losses and 15% dividends - quote - > If you have net capital losses, and 15%-rate dividends, and
Based on the 6/23 draft of Schedule D, the qualified> ordinary income, does the law have you take the losses (only > up to $3000 of course) first against the dividends (most > favorable to the IRS) or first against other ordinary income > (most favorable to you)? dividends are subtracted from the taxable income to determine the amount subject to ordinary rates. Since the taxable income takes account of the $3,000 loss, this is the "most favorable to you" version. -- Don EA in Upstate NY << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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12-04-2003, 05:10 AM
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| Re: Capital Losses and 15% dividends "Rich Carreiro" <rlcarr[at]animato.arlington.ma.us> wrote - quote - > If you have net capital losses, and 15%-rate dividends, and
Just came from class, and they said that capital loss> ordinary income, does the law have you take the losses (only > up to $3000 of course) first against the dividends (most > favorable to the IRS) or first against other ordinary income > (most favorable to you)? carryforwards do not offset dividend income, but other ordinary income first. So you don't net out the dividends and then another $3000. I believe the hierarchy would be: Capital gains up to $3000 to ordinary income which would or could include dividends at some point. -- Paul A. Thomas, CPA Athens, Georgia taxman at negia.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
12-02-2003, 10:27 PM
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| Capital Losses and 15% dividends If you have net capital losses, and 15%-rate dividends, and ordinary income, does the law have you take the losses (only up to $3000 of course) first against the dividends (most favorable to the IRS) or first against other ordinary income (most favorable to you)? -- Rich Carreiro rlcarr[at]animato.arlington.ma.us << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| 15%, capital, dividends, losses |
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