How much can you get back on a loss of stock sale?

[howard555]

Originally Posted by Texas User

I called IRS and they said IRS owes me something so I should file 2008 and 2009.

Is your question hypothetical or did you actually lose $3000 and you are using H&R Block and you are in the 15% tax bracket?

Capital losses on Schedule D are there to offset your gains. If you have more gains than losses, you can use $3000 of the excess. That $3000 goes straight to your 1040 page one and is directly subtracted from earned income.

It you need to file an amended return for 2008 and 2009, maybe you need to take your documents to H&R and let them do it for you.

There may also be a time limit on amended returns.

Such as:

You’ve got three years from the due date of the tax return you are amending to file an amendment. After three years the government says thanks for the free tax dollars, and you can’t get your money back.

Time Limit on Filing Amended Tax Return

[muochoir]

Originally Posted by silverfox

If you take a loss in 2010 of $3000 and it's not a "Wash Sale" and you have no gains to go against it, you can carry it forward each year until you do.

Lets say you have no gains this year but in 2 years from now you do. You can use any portion of your old loss each year until it is used up.

Silverfox

You don't wait to deduct it until you have a gain, but there's a limit of $3k/yr (I think).

[howard555]

Originally Posted by muochoir

You don't wait to deduct it until you have a gain, but there's a limit of $3k/yr (I think).

Investment losses are limited to $3000 a year and you can carry them forward forever (until the whole tax structure is changed and investment gains are no longer taxed -flat tax or sales tax, etc.)

If you have $12,000 in losses and you are basically no longer investing, you can claim $3000 in losses for 4 straight years.

In my previous comment I made an error.

Here is the correction:
Capital losses on Schedule D are there to offset your gains.
If you have more gains than losses,

>> If you have more gains than losses, should have read:
If you have more losses than gains,

you can use $3000 of the excess. That $3000 goes straight to your 1040 page one and is directly subtracted from earned income.

[mathjak107]

the order is short term capital losses go to offestting short term capital gains first. anything left goes goes into the pot for use against long term capital gains.

long term capital losses go against long term capital gains first, then against short term capital gains.

anything left over can be written 3k at a time against any income.

[howard555]

Originally Posted by mathjak107

the order is short term capital losses go to offestting short term capital gains first. anything left goes goes into the pot for use against long term capital gains.

long term capital losses go against long term capital gains first, then against short term capital gains.

anything left over can be written 3k at a time against any income.

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You are 100% correct.

Maybe the Op can reply to this:
"Is your question hypothetical, or did you actually lose $3000, and you are using H&R Block, and you are in the 15% tax bracket?"