In article <59tem4pdo39kb82drd8l2gj5vjqqde26bo[at]4ax.com> ,
DF2 <replyvia[at]newsgroup_please.com> wrote:

- quote -

And that matters in the final year, when your CG exceed your carryover
CL, since it controls which CG are cancelled out.

Seth

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In misc.taxes.moderated, Bill wrote:

- quote -

Just to add... that $3000 depletes the short-term losses first, so
that if you had both $9000 of ST and $9000 of LT losses, you will
carry over $6000 of ST and $9000 of LT losses.

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Mort[at]lccn.com (mort) posted:

- quote -

Not quite. As covered in another current thread in this group, you must
fill out the Capital Loss Carryover Worksheet (included with Schedule D
instructions). That segregates short and long term loss carryovers.

For future years, the Worksheet will cause the "ST" carryovers to be
used first against ST losses ... but as for the $3,000 deduction against
ordinary income, that will apply as long as there are any carryover
losses.

You must do the Worksheet, and I would recommend you staple a copy of it
to the front of your paper return record, so when you get ready to
prepare the following year's return, you'll be prompted to include
carryover data in your computations -- and continue to use the
Worksheet, until you've used all of that carryover.

BTW, welcome to the club of those with large carryovers. Alas, I also
took a bath inside my IRA, where it does me no good at all.

Bill

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

I have a very large capital loss in 2008.

Next year I can apply use it against any capital gain, and then $3,000 of it
against ordinary income. Repeat until used up. Is that correct?

So, until I use up my 2008 capital loss, there is no difference between long
and short term capital gains; they both net out against the carryover the
same.

Is that correct?

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