- quote -

You will net the $500 gain against your $15K loss carryover
and come up with $14,500 loss, $3000 of which you can use in
2004. The $11,500 will be carried over into 2005.

Kate, EA in PA

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M. B. <REMOVETHESPAMmystic02[at]verizon.net> wrote:

- quote -

Not likely. Chances are you must net the 15,000 against the
500 gain and then use 3000 loss. That leaves you with 11,500
carryover.

If you had little income, use the capital loss carryover
worksheet to calcualte the loss carryover.

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

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- quote -

No. You will use $3,500 of losses for a net capital loss of
$3,000 which you take against other income, leaving $11,500
loss to carryover to future years.

--
Thomas E Healy, CPA, PC
1650 38th St., Ste 202W
Boulder, CO 80301
Please send email to: tom[at]tomhealycpa.com, since I block all email at my
newsgroup address.
phone (303) 443-1804
fax (720) 489-3772

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"M. B." <REMOVETHESPAMmystic02[at]verizon.net> writes:

- quote -

No. See the Schedule D to see how it works. The carryover
from prior year gets netted with your 2004 transactions to
give you a bottom line. With the figures you've given your
2004 Schedule D will show a bottom line $14,500 loss, of
which $3,000 will go to line 13 of the 1040 and 11,500 will
carry forward to 2005.

Phil Marti
Clarksburg, MD

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"M. B." <REMOVETHESPAMmystic02[at]verizon.net> wrote:

- quote -

Either you have a capital gain, or you have a capital loss,
you can't have both.

- quote -

You treat the carried-forward loss as if it occurred this
year, and include it on your Schedule D. You use $500 of it
to offset your capital gain, and use $3,000 of it to offset
ordinary income. Then you'll carry the remaining $11.5K
over to next year.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA

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You've got that right!
This is a profession in which, if you walk in with a huge
stock loss, we say "GOOD".

Wierd.

But Schedule D FIRST nets the short term gain and losses,
then the long term gains and losses, then short and long get
netted.

If the bottom line is a gain, you get taxed. If the bottom
line is a loss, you are allowed up to $3000 a year and
"happily" (I said we're wierd!) carry the rest over to next
year.

Nan, EA in LA

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- quote -

No. You will use $3500 of the $15K against the $500 gain,
showing a loss of $3000 and have $11.5K to use in the
future.

Ira Smilovitz

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- quote -

Your old losses are first offset by your new gains. If
there is loss remaining, you may deduct up to the $3,000
limit.

The loss you are eligible to claim would be the $12,000 -
the $500 gain. This leaves you with a $11,500 loss of which
$3,000 is currently deductible. The balance ($8,500) is
carried over to future years.

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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M. B. <REMOVETHESPAMmystic02[at]verizon.net> wrote:

- quote -

Even better.

You net the $15K against the $500 and have a $14,500 capital
loss. You get to use $3K this year, and carry forward
$11.5K.

Seth

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M. B. wrote:

- quote -

Deja Vu all over again! Hasn't this question been asked (and
answered) already?

In any case, you apparently are misinformed on the Loss
Carryover rules, as they apply to the current year. If you
follow the calculations on Schedule D and worksheets, you
will find that the 2004 $500 gain is offset by your $15k
carryover loss (reducing it to $14,500), THEN $3,000 is used
to offset ordinary income. Bottom line, you have no net
gains and your Loss Carryover to 2005 is $11,500.

Do the same thing in each future year, until the carryover
is used up.

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"M. B." <REMOVETHESPAMmystic02[at]verizon.net> writes:

- quote -

That's not quite how it works. You use the loss to offset
gains dollar-for-dollar and then if there are any losses
left over, you take up to $3000 of them against ordinary
income.

So you will burn up $3500 of loss carryover, which will
result in you reporting a $3000 capital loss and carrying
$11,500 of loss over to 2005.

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

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have about $15K in capital gains losses that I am carrying
from the past year(s). As of this moment, I have about a
$500 gain for my 2004 capuital gains in stock transactions.

My questions is this: Will I be able to take the $3K
(maximum amount permited) loss from the $15K and use it
against the $500 gain and make it "look" like I lost $2,500
for the year? And would mean that I will still have a $12K
carryover for the next 4 years to use?

Thanks for the input!

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