- quote -

curiousgeorge408> I can imagine it will take more than 3 years to work off the
curiousgeorge408> carryover; and that assumes that it does not grow in 2009.

I have a related question/observation.
Presume a taxpayer has a large AMT-only deferred capital loss, and an
AMT credit (think ISO exercise-and-hold, pay tax, see stock plummet,
sell shares in later tax year).

Given the provisions for tax years 2008 & 2009 that accelerate the
return of AMT credit from ISOs, all of the remaining ISO-generated AMT
credit is returned to taxpayer in tax year 2009, but only a small part
of the deferred capital loss is used up.

That means the AMT loss will outlive AMT credits by many tax years. Are
there benefits to having such a loss on the books, when there's no AMT
credit to be gained? Are there situations where the deferred losses can
reduce AMTI and keep taxpayer out of AMT in years when otherwise he'd be
paying it?

--
==John Kohl <jtk[at]bostonpog.org> , <john_kohl[at]alum.mit.eduHome page: <http://mysite.verizon.net/jtkohl/index.htm
--
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"Mark Bole" <makbo[at]pacbell.net> wrote in message
news:LZJCl.26030$YU2.21906[at]nlpi066.nbdc.sbc.com...
- quote -

It may not be required, but it's still better to file the return. It
doesn't confuse the IRS and gets the period of limitations started.

--
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Mark Bole wrote:
- quote -

issues one must look out for:

1. The carryover losses get applied before the deduction for
personal exemptions. Therefore, it is possible to have zero
taxable income and still use up capital losses.

E.g., joint return, 3 exemptions. Without any application of a
$4000 capital loss carryover, income after deducting the std
deduction is $5000. After deducting $10500 in personal
exemptions, TI goes negative. Taxpayer has to first apply the
$3000 capital loss carryover. This drops the income after
deducting the std deduction to $2000. As this is still positive,
taxpayer only has $1000 of capital losses to carry over to the
next year.

2. Some states' tax laws don't conform to federal rules on
capital gains and losses and some also don't conform to the rules
for carryover losses. Therefore, it is quite possible that the
state carryover will be different then the federal carryover and
how it gets applied will be different.

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Wilson wrote:

- quote -

Nope, just keep the annual carryover worksheet for your records.

-Mark Bole

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

sometime in the recent past curiousgeorge408[at]hotmail.com posted this:
- quote -

in a year that you have no regular income or capital gains to apply it
against otherwise it is lost.

Somebody correct me if I'm wrong.

--
Wilson N44º39" W67º12"

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"JoeTaxpayer" wrote:

- quote -

you die.

Phil Marti, VITA Volunteer
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. > << ------------------------------------------------------- >

curiousgeorge408[at]hotmail.com wrote:
- quote -

No. In fact I don't believe the carryover form tracks the year of loss,
just the dollar amount, e.g. if I lost $100,000 in the netcom bubble,
and still show $70,000 carry over, the last set of forms doesn't
identify that the original loss was 2001.
The loss will carry until you use it all $3000/yr, have gains which the
loss can negate, or the tax laws change and make those carry forward
losses either not allowed or moot.

Joe

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

Is there any limit to the number of future years to which we
can apply capital loss carryover?

I would think not. But it doesn't hurt to ask. (Hah!)

Like so many people, I imagine, 2008 was a banner year
for capital losses :-(. Obviously, only -3000 applies to 2008,
leaving me with a huge carryover.

I can imagine it will take more than 3 years to work off the
carryover; and that assumes that it does not grow in 2009.

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