sinc720d[at]bellsouth.net (sinc720d) writes:

- quote -

No. Take a look at the Schedule D and you'll find that all
capital gains and losses, including carryovers, are netted.

Phil Marti
Topeka, KS

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sinc720d[at]bellsouth.net (sinc720d) wrote:

- quote -

There is no "greater than 18 month" capital gains, only
short-term (one year or less) and long-term (greater than
one year). Your capital loss carryover will be used first to
offset the same type of gain, then the other type of gain.
All gains and losses are eventually netted together (see
Schedule D) and any remaining losses is used to offset
ordinary income (up to $3,000). Remaining loss is then
carried over to the next and future years.

- quote -

If you don't feel it is time to sell your short-term
investment, it is not necessary to do so just to offset a
carry over loss. The loss can be carried over to future
years and used then. At the least, it can offset $3,000 of
ordinary income each year.

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I have a decent sized (over $10K) LONG-TERM capital loss
carryover heading into 2004. The loss comes from stock held
for close to 3 years.

Strictly from a tax perspective, if I am faced with capital
gains in 2004, should I worry or not worry about the type of
capital gain? Specifically, is there any difference for me
if the gain is short-term, greater than 12 months or greater
than 18 months?

If I find myself sitting on a short-term gain in 2004, I'd
like to know the tax implications of selling or holding it
longer (assuming the gain stays constant and intact - which
I know is never going to be the case.)

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