phil.pellouchoud[at]gmail.com writes:

- quote -

Well, the entire amount less the $3000 chunks that had
previously been taken.

- quote -

It means that in 2003 you would have taken $3000 against
ordinary income and carried $97,000 to 2004. In 2004
you would have used that $97,000 to offset any cap gains
realized in 2004. If none, you'd take $3000 against
ordinary income and carry $94,000 to 2005. In 2005
you would have used that $94,000 to offset any cap gains
realized in 2005. If none, you'd take $3000 against
ordinary income and carry $91,000 to 2006. In 2006
you would use that $91,000 to offset any gains realized
in 2006. You realized $100,000 in 2006, so you'd end
up with a net gain of $9,000 and your carryover would
be all used up.

- quote -

Then you did something wrong when you entered your
data into TT.

- quote -

Yes. You do have to track ST and LT carryovers
separately and you have to use ST carrovers first
against ST gains, then against LT gains, then
against ordinary income. Likewise, you have to
use LT carryovers first against LT gains, then
against ST gains, then against ordinary income.

- quote -

Until you die or it's used up, whichever comes first.

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

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<phil.pellouchoud[at]gmail.com> wrote:

- quote -

No, you used $3000/year from 2003 to 2005, so there's only
$91,000 left for 2006.

- quote -

You can use all of the $91,000.

- quote -

Are you sure they weren't applied further down the form?

- quote -

Only a little: first, they apply to gains of the same type;
then if there's a balance, they can apply to gains of the
other type.

- quote -

It lasts until it gets used up.

Seth

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I have a buddy who told me that a capital loss carryover can
be used to be applied towards a capital gain in later years.
Not just the $3000 amount, but the entire amount. The
$3000 can be applied towards ordinary income, but the full
amount can be applied against capital gains -- which makes
sense to me :-).

Let me use an example:
Suppose in 2003 I had a capital loss of $100,000.
In 2006, I had a capital gain of $100,000.

Does that mean in 2006, I can take the full $100,000 of
capital gains tax free? i.e. use the capital loss of
$100,000 against the capital gain of $100,000 in 2006?

I have a similar type of situation (the numbers have been
changed to protect the innocent :-), but in TurboTax, the
Capital Loss Carryovers are there, but are not deducted from
my capital gains of this year.

Also, does it matter whether they are long term vs. short
term capital gains / losses? And is there a maximum time
you can do this for (or can you keep doing it until it's
used up)?

-phil

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