- quote -

Do the carryover worksheet, it will answer your question.

Helen, EA in PA
Member of The Tax Gang
Director, National Assoication of Enrolled Agents
Immediate Past President, PA Society of Enrolled Agents

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MC wrote:

- quote -

If you have NO taxable income (disregarding personal
exemptions), then you can save it.

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michaeljc70[at]hotmail.com (MC) writes:

- quote -

You have to carry it from year to year, but if you have no
income in a year you'll find that the carryover goes forward
unmolested.

Phil Marti
Topeka, KS

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Does that apply to years I have no income (and therefore
won't receive any tax benefit from the $3000 deduction) or
can I save it then?

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lrnich[at]juno.com (Lois Nicholson) writes:

- quote -

Maybe yes, maybe no. (How unusual in tax law) To
oversimplify it and without benefit of a loss carryover
worksheet, since there isn't one in 2003, the taxpayer gets
benefit of the standard or itemized deductions, but not the
personal exemptions. Thus, if there's zero taxable income
before the personal exemptions are applied, the full loss
carries over. Otherwise, some is used up.

Phil Marti
Topeka, KS

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lrnich[at]juno.com (Lois Nicholson) writes:

- quote -

Yes, that can happen.

- quote -

Again, yes, that can happen.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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kamlet[at]panix.com (Arthur Kamlet) wrote:

- quote -

Do I understand this correctly? If a taxpayer has current
year income below the "must file" threshold (but not zero
income) as well as a capital loss carryforward from last
year, some of the "loss" will be "used up" without
benefiting the taxpayer. Even if no taxes would have been
owed without the carryforward, the amount allowed to be
carried forward for next year will be decreased, right?
This is not only a possible scenario for a minor owning
stocks, but for senior citizens.

Lois Nicholson

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- quote -

No.

- quote -

The only way that a capital loss may not be used is if your
taxable income is mathematically less than zero. (I don't
recall if it needs to be zero before the personal/dependency
exemptions - but that's what carryforward worksheets are
for.)

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Herb Smith <smithff33[at]aol.com> wrote:
- quote -

On the other hand -- there's always other hands -- if
income ois so low that carryover loss won't do any good,
even though 3000 loss goes on Form 1040 Line 13, some or all
of that loss can still carryforward to next year via the
worksheet.

In a trivial case, zero income and a 5000 loss carryforward,
you would enter 3000 on schedule D, and (3000) transfers to
form 1040 Line 13 and the carryover worksheet tells you that
you still have 5000 carryforward to the next year. Very
possible scenario for a minor owning stocks.

Don't try this at home, kiddies, because Santa didn't bring
any capital loss carryover worksheets this year :-(

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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MC wrote:

- quote -

No.

--
Alan
http://taxtopics.net

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MC <michaeljc70[at]hotmail.com> wrote:

- quote -

No, you have no choice. You must file schedule D and enter
the previous year's carryover loss on that schedule D. And
enter loss on Form 1040 Line 13.

Until this year, you would then complete the capital loss
carryover worksheet in the Schedule D instructions, and
would be ready to do this next year. This year, what with
uncertainty about whether carryover loss attributable to
before-May 6 sales would be treated differently than loss
post-May 5, there is no carryover worksheet this year.

But next year you'd better remember the carryover loss!

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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"MC" <michaeljc70[at]hotmail.com> wrote:

- quote -

You can't skip years.

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"MC" <michaeljc70[at]hotmail.com> wrote:

- quote -


No.

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- quote -

Nope. You must use $3,000 in losses over gains (or just
losses if you have no other activity) each year until gone.

Helen, EA in PA
Member of The Tax Gang
Immediate Past President, PA Society of Enrolled Agents

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michaeljc70[at]hotmail.com (MC) wrote:

- quote -

This is incorrect, you will use $7,000 of carryover loss
($4,000 + $3,000 against ordinary income).

- quote -

Again, this is incorrect. You will use the remaining $3,000
of carryover loss against the $5,000 of CG. You will pay CG
tax on the remaining $2,000 of gain.

- quote -

Incorrect, but moot. There is no longer any carryover loss
to use up.

- quote -

The use of a carryover loss to offset current year capital
gains or ordinary income is not optional, but must be
applied according to the rules. You DO NOT have the option
to choose when, and under what circumstances, the loss is
used up.

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michaeljc70[at]hotmail.com (MC) writes:

- quote -

No. You must put it on the next year's Schedule D and take
it from there.

Phil Marti
Topeka, KS

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If I have a capital loss carryover, can I pick and choose
when to use it. For example, say in year 1 I had carried
over $10,000 loss.

YR CAP GAIN USE OF CARRYOVER
1 4000 4000
2 5000 0
3 5000 5000

The reason would be if your tax bracket changes drastically,
you could use that to your advantage. I know you can deduct
$3000 of it from ordinary income, but is that optional too?

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