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#7
03-17-2005, 06:11 AM
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 Re: Spreading a loss over several years Mike Lewis wrote: - quote - > Capital losses can only be carried forward. In the future
That's $1500 if MFS, and $3000 otherwise....> years, they can be offset against capital gains plus a max > of 1500 if single/3000 if joint. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#6
03-13-2005, 11:34 PM
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| Re: Spreading a loss over several years mytax[at]adams.net writes: - quote - > You report the gain or loss *only* when you sell the stock.
To the original poster: the above answer is correct, but may> If you sold the stock at a profit (basis + fees - sales > price) you pay tax on the profit. If you have a loss you > may deduct up to $3000 per year until it is all deducted. > If you did not sell any stock, you do not report any. be confusing to someone not familar with the loss limitation rules. What the above answer is shorthand for is: If you have a *net capital loss* for the year, INCLUDING ANY CARRIED IN LOSS from a previous year, then you can only deduct $3000 of the loss that year, with the remainder carrying forward to next year. In other words, there is no limit to how much loss (carried in from previous years and/or realized in the current year) can be deducted against gains realized in the current year. -- Rich Carreiro rlcarr[at]animato.arlington.ma.us << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#5
03-13-2005, 10:37 PM
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| Re: Spreading a loss over several years "Paul B." <pb_public[at]operamail.com> wrote: - quote - > Last year I made a good profit on my stock investments. This
Capital losses can only be carried forward. In the future> year there is a chance I may end up with a loss. Do I > understand it correctly that I must pay full tax on last > year's profit at this time, but that next tax season I can > begin to spread this year's loss over several years? I would > love to spread it retroactively to last year, if that's > possible. years, they can be offset against capital gains plus a max of 1500 if single/3000 if joint. This means if you have no capital gain in 2005 and you are single, you get to use 1500 to reduce income. If there is still an unused loss, it continues to be carried forward. Mike Lewis, CPA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#4
03-12-2005, 01:38 PM
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| Re: Spreading a loss over several years "Paul B." <pb_public[at]operamail.com> wrote: - quote - > Last year I made a good profit on my stock investments. This
What idiot told you this? Of course you can't.> year there is a chance I may end up with a loss. Do I > understand it correctly that I must pay full tax on last > year's profit at this time, but that next tax season I can > begin to spread this year's loss over several years? - quote - > I would love to spread it retroactively to last year,
It's not.> if that's possible. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#3
03-12-2005, 01:19 PM
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| Re: Spreading a loss over several years It is applied against future gains of the same category (short, long) and in $3000 annual offsets to other income. It goes until it runs out, you die, or Congress changes the law. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
03-12-2005, 01:00 PM
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| Re: Spreading a loss over several years "Paul B." <pb_public[at]operamail.com> writes: - quote - > Last year I made a good profit on my stock investments. This
[snip]> year there is a chance I may end up with a loss. Do I - quote - > begin to spread this year's loss over several years? I would
It's not.> love to spread it retroactively to last year, if that's > possible. -- Rich Carreiro rlcarr[at]animato.arlington.ma.us << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
03-12-2005, 12:41 PM
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| Re: Spreading a loss over several years You report the gain or loss *only* when you sell the stock. If you sold the stock at a profit (basis + fees - sales price) you pay tax on the profit. If you have a loss you may deduct up to $3000 per year until it is all deducted. If you did not sell any stock, you do not report any. Missy Doyle << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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03-12-2005, 12:22 PM
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| Re: Spreading a loss over several years Paul B. wrote: - quote - > Last year I made a good profit on my stock investments. This
If you are asking about a net capital loss, the maximum> year there is a chance I may end up with a loss. Do I > understand it correctly that I must pay full tax on last > year's profit at this time, but that next tax season I can > begin to spread this year's loss over several years? I would > love to spread it retroactively to last year, if that's > possible. amount allowed for the year is $3000. Any excess gets carried in only one direction--------> forward. -- Alan http://taxtopics.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
03-09-2005, 10:56 PM
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| Spreading a loss over several years Last year I made a good profit on my stock investments. This year there is a chance I may end up with a loss. Do I understand it correctly that I must pay full tax on last year's profit at this time, but that next tax season I can begin to spread this year's loss over several years? I would love to spread it retroactively to last year, if that's possible. TIA Paul -- Given address is checked only infrequently. Please reply to group. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| loss, spreading, years |
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