Seth wrote:
- quote -

I'm pretty sure this must be in the group archives, but anyway, first
against ST, then LT.

-Mark Bole

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In article <m3sku7w74l.fsf[at]swing-shift.time-tripper.com> ,
Rich Carreiro <rlc-news[at]rlcarr.com> wrote:

- quote -

If there is both LT and ST loss, which does the $3000 used against
ordinary income come from?

Seth

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Ron Hardin <rhhardin[at]mindspring.com> writes:

- quote -

Yes.

But so do long-term losses after cancelling short-term gains.

The algorithm is:
(a) combine ST gains and ST losses to get net ST gain (loss).
(b) combine LT gains and LT losses to get net LT gain (loss).
(c) combine net ST gain (loss) with net LT gain (loss) to get
net capital gain (loss).
(d) if there is a net capital gain, the whole gain goes on 1040
and the LT piece of it (if any) is taxed at the special
LT rates via the cap gains worksheet.
(e) if there is a net capital loss, the loss (but no more
than $3000 of loss) goes on 1040 and offsets ordinary income.
(f) The excess loss is carried over to next year, and retains its
sub-characters (the ST and LT portions of the loss are carried
over separately)

--
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. > << ------------------------------------------------------- >

"Ron Hardin" <rhhardin[at]mindspring.com> wrote
- quote -





Yup. Any remaining capital loss gets carried forward.







--
Paul A. Thomas, CPA
Watkinsville, Georgia

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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. > << ------------------------------------------------------- >

Does a net short term loss, after cancelling long
term gains, still offset ordinary income dollar
for dollar up to $3000? Or is it some other rule
today.

I'm wondering if it's worth selling before a year
to protect the short-term nature of the loss.

I've been out of this for two decades and who
knows what's been changed.
--
rhhardin[at]mindspring.com

On the internet, nobody knows you're a jerk.

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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. > << ------------------------------------------------------- >