"Taxlover" <taxlover[at]yahoo.com> wrote in message
news:tgfCj.6092$7d1.42[at]news01.roc.ny...
- quote -

Capital losses don't carry back.

Historically: Did they ever? I think I heard that they might have under
the IRC of 1937.

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On Mar 13, 8:26*am, "Taxlover" <taxlo...[at]yahoo.com> wrote:

- quote -

If you are a trader and have made the marked-to-market election, then
you can report all your gains and losses on Form 4797, and the wash
sale rules and capital loss limitations don't apply. Also, you don't
pay SE tax.

http://www.irs.gov/taxtopics/tc429.html

If you made the above election and have a net operating loss, you can
probably carryback or carryforward.

But some things come up:

To change your accounting method you use form 3115. What is the fee?

How to revoke the 475(f) election? You need IRS consent, but what is
the fee?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Taxlover wrote:
- quote -

first 2 1/2 months? Wow! Let's hope the market improves before end
of year, and you can sell others at a gain and come close to breaking
even. might take some fancy tax planning to do this though.

ChEAr$,
Harlan Lunsford, EA n LA

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"Taxlover" <taxlover[at]yahoo.com> writes:

- quote -

That is correct.

- quote -

Yes, it would be. But it's not allowed.

--
Rich Carreiro rlc-news[at]rlcarr.com

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

- quote -

If I have $50,000 in dividends and $100,000 in capital losses in 2008, then
my 2008 income is $47,000 and I have $97,000 in losses carried forward to
2009.
Is that right? Well, that is certainly better than nothing; though it would
be nice to be able to carry it back to 2007.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Taxlover" wrote:

- quote -

Is this on paper, in which case it doesn't affect your taxes, or a loss from
completed 2008 sales, in which case it does.

- quote -

Right. If the only income you have is from trading stocks and you have a
net loss for the year, you'll have no income tax liability, thus no
estimated tax payment requirement.

If you do have other income, remember that only $3,000 of your net capital
loss for the year can be applied to this year's return. The balance is
carried forward to the next year's Schedule D.

See IRS Publication 550.
--
Phil Marti
Clarksburg, MD

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

So far this year I am running a net loss; unless the stock market improves
pretty dramatically, it will stay that way.

1) Presumably the issue of quarterly estimated tax payments is moot; if I
don't have income for the year, there can't be a penalty. Right?

2) Can losses be carried forward or backwards?

Couldn't have come at a worse time; I am sitting on a big slug of 2007 taxes
to be paid on 4/15/08. I was supposed to make money on the float, not lose
money. Oh well.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >