Harlan Lunsford wrote:
- quote -

Thanks for your valuable inputs. I have filled the Form
1040; in Schedule D in Line 6 I have entered unused
short-term loss of $33,948. As in 2001 return I showed the
short-term loss of $36,948. 2001 return was the last return
when I claimed capital loss of $3000. I didn't file the
return for 2002, 2003, 2004 as during that period of time I
had no income and I was non-resident alien during that
period. I filed the return for 2005 but didn't file Schedule
D, as my income was very less to offset i.e. $1,354.

So now my question is that

1. Can I simply carryover capital loss of 2001 into this
year return and wait for any query/audit from IRS as they
might get suspicious by finding that from what source this
capital loss is getting carried over as I filed for 2005 but
didn't mentioned about that in that return or should I tag
any kind of note with the return that this capital loss is a
carryover from 2001 which was never used during 2002 - 2005.

2. Do I need to amend the return of 2005 just to reflect the
capital loss carryover. I am not sure whether this is
required.

3. Last but not least do I need to maintain the capital loss
carry over worksheet and attach to the return. As I never
did that before because all I had was losses which I incured
during boom time and my only source of income is W-2. No
other investment/property etc so my return is very simple
except that complex capital loss carry over.

Regards
Raj

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ukreja.rajan[at]gmail.com wrote:

- quote -

You say you are not a US citizen and did not have any income
in the US between 2002 and 2005, except $1,354. You do not
say what visa or residence status you do have. Are you a
greencard holder? Or otherwise considered a permanent
resident of the US? Did you have income in your home
country during these years?

If you were a US resident, you are required to file a US tax
return and report ALL worldwide income. So, the amount of
capital loss carryover may not be determined from the facts
available.

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

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kukreja.rajan[at]gmail.com wrote:

- quote -

Ah, all is clear. You still need to do the worksheets for
intervening years and retain in your files. And for those
years the capital losses are suspended, so you will
effectively resume in 2006.

ChEAr$,
Harlan Lunsford, EA n LA

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Let me further explain it. The last return I filed was in
2001, in which I mentioned the capital loss carryover of
$36,948. I never filed the return for the period 2002-2004,
as I had no income in US during that period because I am not
a citizen of US and I was back in my home country during
that period of time. I came back to US in Dec 2005 again,
filed the return for 2005 because I worked for 3 weeks
during that year. I did not mention anything about capital
loss carry over in my 2005 return because my gross income
for that period was only $1,354.

So now I was wondering if I could offset $3000 limit from
my taxable income of 2006. I have no capital gains to
offset. Any advice on how to proceed on this would be highly
appreciated.

Thanks
Raj

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Bill wrote:
- quote -

Maybe; maybe not. A worksheet should be completed for
each year of course, but if any intervening year had no
other income against which to offset the 3000, then no
reduction is used and the full amount is carried over to
next year. Thus if he had NO income for 2002 and 2003, the
carryover is from 2001 to 2004 in toto.

ChEAr$,
Harlan Lunsford, EA n LA

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<kukreja.rajan[at]gmail.com> wrote:

- quote -

You need to file amended returns for every year from the
first after you had a loss carryover until now. You only
get back the taxes for the last 3, but you need the others
to show the amount of carryover still available.

The carryover that was used in 2002 (for 2001 tax year) is
lost if not taken then. For years after that you can still
get a refund.

Seth

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kukreja.rajan[at]gmail.com wrote:

- quote -

Assuming no other capital gains or losses during the
intervening years, you get to claim 3000 for 2006, AND you
may go back and amend 2003, 2004 and 2005 for possible
refunds.

ChEAr$,
Harlan Lunsford, EA n LA

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kukreja.rajan[at]gmail.com writes:

- quote -

No. You don't get to pick and choose when you take the
capital loss carryover.

*Every year* you have to enter the remaining carryover on
your Schedule D and include it in that year's Sched D
calculations just as if it were a "fresh" loss taken that
year. Then you fill out the loss carryover worksheet to see
how much loss remains for the next year.

You very likely need to amend your 2000-2005 tax returns,
since it sounds like you did them wrong.

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

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<kukreja.rajan[at]gmail.com> wrote:

- quote -

you need to prepare the capital loss carryover worksheet
(for each year)

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

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kukreja.rajan[at]gmail.com wrote:

- quote -

The loss you didn't take should have flowed to the "Federal
Carryover Worksheet" a 'keep for your records' (do not file)
form. Each year, you then get to take the loss that will
negate your cap gains, and then up to $3000 of ordinary
income. So the answer is 'yes' with a qualification. Do you
now have gains to offset? If you never have gains, you take
$3000/ year till it's (the carried loss) is used up.

JOE
JoeTaxpayer.com

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kukreja.rajan[at]gmail.com posted:

- quote -

No. Assuming you filed annually, you should have been
carrying over the loss and deducting $3,000 of it each year.
If you didn't file annually, you still have to deduct
$3,000 for each intervening tax year. In your case, if you
filed for 2001, and the $36,948 remainder stems from then,
you would deduct an additional $3,000 for 2002, ;03, '04 and
2005 -- so $24,948 would still be available as carryover to
the 2006 tax year.

Enter that on the work sheet and it will take off another
$3,000 for 2006 ... and also provide a report showing
$21,948 carryover remaining (assuming you have no other
capital gains or losses for the year).

That report should be stapled to the front of your copy of
the 2006 filing record, as a reminder to you (or your
preparer) when it comes time to file for 2007.

Bill

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<kukreja.rajan[at]gmail.com> wrote:

- quote -

This makes no sense without further explanation. Each year
stands by itself. If the bottom line of Schedule D is a
loss greater than $3,000, $3,000 goes on the 1040 with the
balance carried forward to the next year's Schedule D, where
the process begins again. Depending on what other income
there was, it's possible that no loss actually gets used in
a year, but the only way to tell is to do the returns.

--
Phil Marti
Clarksburg, MD

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<kukreja.rajan[at]gmail.com> wrote

- quote -

Why only once? You can use up-to $3000 of losses to off-set
ordinary income each year.

But to your question, you can carry the losses forward for
as many years as it takes to use them up.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

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kukreja.rajan[at]gmail.com wrote:

- quote -

A capital loss carryover continues until used up, or you
die. Use of the carryover (even if you had no capital gains
to offset) should be considered EVERY year after the year of
loss, and a new capital loss carryover worksheet completed
if not used up.

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I would really appreciate if anyone could advice me on this.

I had capital loss of $36,948 in stock market during
1999-2001 period out of that I only claimed $3000 once. Can
I claim the remaining amount as capital loss carrrover in my
2006 tax return.

Thanks in advance

Raj.

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