Schedule D capital loss carryover

#9 06-04-2006, 04:54 AM

San Diego CPA wrote:
- quote -

> "Harlan Lunsford" <hlunsford[at]bellsouth.net> wrote:
> > Bill wrote:
> > > gme6[at]cornell.edu (Seraphim) posted:

> > > > Here is my situation, I'm not quite sure what I
> > > > should do: In 2003 I had about $6800 in
> > > > losses on Schedule D. I claimed $3000. In
> > > > 2004 I had no income and did not file a federal
> > > > return Now, I don't know what to do with the
> > > > remaining $3800 from the 2003 Schedule D.
> > > > The Schedule D instructions say to refer to my
> > > > 2004 Schedule D, but I don't have one, so I
> > > > have no idea how much (if anything) I can
> > > > claim.

> > > The general understanding is that you must take at least
> > > $3,000 of any capital loss carryover in each succeeding
> > > year, whether you need it or not.
> > > > > The cite I would usually use, Pub 17, has an example and
> > > discussion on page 106 -- but I swear it's so opaque that
> > > _I_ couldn't use it (refers to a worksheet). But you could
> > > read the section on that page re: Capital Losses. It does
> > > support thte general understanding, so I'm sorry, but you
> > > probably used $3,000 of that carryover in 2004 -- even when
> > > you didn't need it, and without having to file.
> > > > > For your sake, I actually hope somebody comes along to
> > > refute that. Shucks. 'Course, you still have $800 left.

> > Duly refuted, Bill. If none of the 3800 was used in 2004,
> > and wasn't, since he had no income, the entire 3800 comes
> > forward and is available.

> Beware of state treatments. I picked up a client a few
> years ago that had a significant CA source capital loss upon
> disposition of a CA-based business activity that occurred 10
> years prior to my getting involved. Upon disposition of
> this business, his only remaining tie to CA was a parcel of
> land held for investment. Over the course of the following
> 10 years, he had no CA source income or expenses and filed
> no CA returns but continued to carryforward and utilize the
> capital loss for federal purposes. After about 10 years of
> no CA returns, he sold the property.

(break for emphasis)
- quote -

> As no returns had been
> filed carrying forward that loss over the years in CA we had
> to attach a schedule to the return showing the annual $3,000
> capital loss carryforward utilization through the 10
> intervening years and only the remaing loss carryforward was
> availble to offset the gain on the sale of the property.

(end break)
- quote -

> For
> our facts, it didn't matter but for many taxpayers, giving
> up $30,000 of loss carrryfoward could make a big difference!
> (the $3,000 may have been lower for CA purposes in prior
> years, I don't recall the details)
As to the corrections you made, i.e. a schedule showing the

annual 3000 carryforwards...... are you saying that for each
of those years, CA required that 3000 be used with no
benefit? That's different from federal, which says in effect
"no need? not used."

but hey, that MAy just be KALH yee for nye yea"

ChEAR$,
Harlan Lunsford, EA n LA

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

#8 06-03-2006, 01:44 PM

"Harlan Lunsford" <hlunsford[at]bellsouth.net> wrote:
- quote -

> Bill wrote:
> > gme6[at]cornell.edu (Seraphim) posted:

> > > Here is my situation, I'm not quite sure what I
> > > should do: In 2003 I had about $6800 in
> > > losses on Schedule D. I claimed $3000. In
> > > 2004 I had no income and did not file a federal
> > > return Now, I don't know what to do with the
> > > remaining $3800 from the 2003 Schedule D.
> > > The Schedule D instructions say to refer to my
> > > 2004 Schedule D, but I don't have one, so I
> > > have no idea how much (if anything) I can
> > > claim.

> > The general understanding is that you must take at least
> > $3,000 of any capital loss carryover in each succeeding
> > year, whether you need it or not.
> > > The cite I would usually use, Pub 17, has an example and
> > discussion on page 106 -- but I swear it's so opaque that
> > _I_ couldn't use it (refers to a worksheet). But you could
> > read the section on that page re: Capital Losses. It does
> > support thte general understanding, so I'm sorry, but you
> > probably used $3,000 of that carryover in 2004 -- even when
> > you didn't need it, and without having to file.
> > > For your sake, I actually hope somebody comes along to
> > refute that. Shucks. 'Course, you still have $800 left.

> Duly refuted, Bill. If none of the 3800 was used in 2004,
> and wasn't, since he had no income, the entire 3800 comes
> forward and is available.

Beware of state treatments. I picked up a client a few
years ago that had a significant CA source capital loss upon
disposition of a CA-based business activity that occurred 10
years prior to my getting involved. Upon disposition of
this business, his only remaining tie to CA was a parcel of
land held for investment. Over the course of the following
10 years, he had no CA source income or expenses and filed
no CA returns but continued to carryforward and utilize the
capital loss for federal purposes. After about 10 years of
no CA returns, he sold the property. As no returns had been
filed carrying forward that loss over the years in CA we had
to attach a schedule to the return showing the annual $3,000
capital loss carryforward utilization through the 10
intervening years and only the remaing loss carryforward was
availble to offset the gain on the sale of the property. For
our facts, it didn't matter but for many taxpayers, giving
up $30,000 of loss carrryfoward could make a big difference!
(the $3,000 may have been lower for CA purposes in prior
years, I don't recall the details)
<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

#7 06-02-2006, 06:34 AM

Bill wrote:
- quote -

> gme6[at]cornell.edu (Seraphim) posted:

> > Here is my situation, I'm not quite sure what I
> > should do: In 2003 I had about $6800 in
> > losses on Schedule D. I claimed $3000. In
> > 2004 I had no income and did not file a federal
> > return Now, I don't know what to do with the
> > remaining $3800 from the 2003 Schedule D.
> > The Schedule D instructions say to refer to my
> > 2004 Schedule D, but I don't have one, so I
> > have no idea how much (if anything) I can
> > claim.

> The general understanding is that you must take at least
> $3,000 of any capital loss carryover in each succeeding
> year, whether you need it or not.
> The cite I would usually use, Pub 17, has an example and
> discussion on page 106 -- but I swear it's so opaque that
> _I_ couldn't use it (refers to a worksheet). But you could
> read the section on that page re: Capital Losses. It does
> support thte general understanding, so I'm sorry, but you
> probably used $3,000 of that carryover in 2004 -- even when
> you didn't need it, and without having to file.
> For your sake, I actually hope somebody comes along to
> refute that. Shucks. 'Course, you still have $800 left.

Duly refuted, Bill. If none of the 3800 was used in 2004,
and wasn't, since he had no income, the entire 3800 comes
forward and is available.

ChEAr$,
Harlan Lunsford, EA n LA
Sun 22 Jan 2006 12:08:47

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

#6 01-23-2006, 05:54 AM

Seraphim <gme6[at]cornell.edu> wrote:

- quote -

> Here is my situation, I'm not quite sure what I should do:
> In 2003 I had about $6800 in losses on Schedule D. I claimed
> $3000. In 2004 I had no income and did not file a federal
> return Now, I don't know what to do with the remaining $3800
> from the 2003 Schedule D. The Schedule D instructions say to
> refer to my 2004 Schedule D, but I don't have one, so I have
> no idea how much (if anything) I can claim.
> Does anyone know where I could get information on what to do?

Did you have no income at all? Or just not enough income to
have to file?

If no income at all, our carryover loss is still there.

If some income but not enough to file, then fill out a tax
return and also a Capital Loss Carryover Worksheet even if
you don't mail it in, you will know the correct amount to
carryover.

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

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

#5 01-22-2006, 11:13 AM

You may have the entire $3,800 still available, or only
$800, or something inbetween. You must complete the
worksheet for capital loss carryovers for 2004 to find out
what you can put on your 2005 return. If you truly didn't
have ANY 2004 income you'll get the whole $3,800. ed

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

#4 01-22-2006, 11:13 AM

Your losses carryover until they are used up, or you pass
away. Although you didn't file for 2004 and presumably
didn't need to, the carryover amount would come from the
carryover worksheet on your 2003 taxes.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

#3 01-22-2006, 10:54 AM

Seraphim wrote:

- quote -

> Here is my situation, I'm not quite sure what I should do:
> In 2003 I had about $6800 in losses on Schedule D. I claimed
> $3000. In 2004 I had no income and did not file a federal
> return Now, I don't know what to do with the remaining $3800
> from the 2003 Schedule D. The Schedule D instructions say to
> refer to my 2004 Schedule D, but I don't have one, so I have
> no idea how much (if anything) I can claim.
> Does anyone know where I could get information on what to do?

The Loss Carryover Worksheet in your 2003 Schedule D
instructions should have been filled out and stored with
your copy of the return. Since you had no income or need to
file in 2004, that worksheet will serve for 2005 filing.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

#2 01-22-2006, 10:35 AM

gme6[at]cornell.edu (Seraphim) posted:

- quote -

> Here is my situation, I'm not quite sure what I
> should do: In 2003 I had about $6800 in
> losses on Schedule D. I claimed $3000. In
> 2004 I had no income and did not file a federal
> return Now, I don't know what to do with the
> remaining $3800 from the 2003 Schedule D.
> The Schedule D instructions say to refer to my
> 2004 Schedule D, but I don't have one, so I
> have no idea how much (if anything) I can
> claim.

The general understanding is that you must take at least
$3,000 of any capital loss carryover in each succeeding
year, whether you need it or not.

The cite I would usually use, Pub 17, has an example and
discussion on page 106 -- but I swear it's so opaque that
_I_ couldn't use it (refers to a worksheet). But you could
read the section on that page re: Capital Losses. It does
support thte general understanding, so I'm sorry, but you
probably used $3,000 of that carryover in 2004 -- even when
you didn't need it, and without having to file.

For your sake, I actually hope somebody comes along to
refute that. Shucks. 'Course, you still have $800 left.

Bill

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

#1 01-22-2006, 10:35 AM

"Seraphim" <gme6[at]cornell.edu> wrote:

- quote -

> In 2003 I had about $6800 in losses on Schedule D. I claimed
> $3000. In 2004 I had no income and did not file a federal
> return Now, I don't know what to do with the remaining $3800
> from the 2003 Schedule D. The Schedule D instructions say to
> refer to my 2004 Schedule D, but I don't have one, so I have
> no idea how much (if anything) I can claim.

The full $3,800 remains available. You will make your life
simpler if you file a 2004 return showing the carryover from
2003 before you file the 2005 return showing the carryover
from 2004. (Even though you'll show -$3,000 on line 13 of
the 2004 1040, the carryover worksheet shows you that the
full $3,800 carries forward to 2005.)

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

01-22-2006, 10:35 AM

Seraphim wrote:

- quote -

> Here is my situation, I'm not quite sure what I should do:
> In 2003 I had about $6800 in losses on Schedule D. I claimed
> $3000. In 2004 I had no income and did not file a federal
> return Now, I don't know what to do with the remaining $3800
> from the 2003 Schedule D. The Schedule D instructions say to
> refer to my 2004 Schedule D, but I don't have one, so I have
> no idea how much (if anything) I can claim.

Bring it on! IOW, you bring over the entire 3800 to 2005.

ChEAR$,
Harlan Lunsford, EA n LA
Fri 20 Jan 2006 18:38

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

#-1 01-20-2006, 10:13 PM

Here is my situation, I'm not quite sure what I should do:
In 2003 I had about $6800 in losses on Schedule D. I claimed
$3000. In 2004 I had no income and did not file a federal
return Now, I don't know what to do with the remaining $3800
from the 2003 Schedule D. The Schedule D instructions say to
refer to my 2004 Schedule D, but I don't have one, so I have
no idea how much (if anything) I can claim.

Does anyone know where I could get information on what to do?

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

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