Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics > Investing
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 02-25-2017, 09:55 PM
 
1,115 posts, read 1,460,267 times
Reputation: 1687

Advertisements

I've been doing my dads taxes for the past few years except in 2015 since he had a complicated situation he needed to see his tax guy (who did his taxes previous to me).

When my dad gave me his 2016 info I realized his accountant (who has missed a lot of things in the past mind you) did not use his Capital loss carry forward (he has about 30k in loses from 2008). Do we need to amend the return? Should I just forget about it and continue suit with the 3k deduction this year?

I was reading turbo tax and it said that the Capital loss carry forward has to be used before a personal exemption so the 2015 return is incorrect. Although the amendment would result in a bigger refund.

Thanks.
Reply With Quote Quick reply to this message

 
Old 02-25-2017, 11:19 PM
 
Location: SoCal
20,160 posts, read 12,689,885 times
Reputation: 16993
Why don't you do an amendment on Turbotax to see if he gets any money back, if not don't bother filing for the amendment. Then use the new information and do his tax for 2016. Much easier with Tirbotax.
Btw, this is one reason I never trust any CPA. I do my own tax.
Reply With Quote Quick reply to this message
 
Old 02-26-2017, 10:19 AM
 
5,291 posts, read 6,118,078 times
Reputation: 5462
Did your dad use up all of his capital loss carry forwards from 2008? You can use those to offset capital gains in future years until the losses are gone.
Reply With Quote Quick reply to this message
 
Old 02-26-2017, 10:39 AM
 
1,115 posts, read 1,460,267 times
Reputation: 1687
Quote:
Originally Posted by Wells5 View Post
Did your dad use up all of his capital loss carry forwards from 2008? You can use those to offset capital gains in future years until the losses are gone.
He still has over 30k in losses to claim. My question is really "do I have to amend the 2015 return". My dad does not care about the extra $300 or so he would get back if he can just continue to claim the losses going forward. From what I've read it seems like you don't have a choice in the matter and you are required to claim the carry forward every year, which would mean I'd need to amend the 2015 return.
Reply With Quote Quick reply to this message
 
Old 02-26-2017, 10:46 AM
 
Location: SoCal
20,160 posts, read 12,689,885 times
Reputation: 16993
The answer is yes. You need to. Otherwise you can claim the forward carry loss.
Reply With Quote Quick reply to this message
 
Old 02-26-2017, 12:07 PM
 
1,115 posts, read 1,460,267 times
Reputation: 1687
Quote:
Originally Posted by NewbieHere View Post
The answer is yes. You need to. Otherwise you can claim the forward carry loss.
Thanks. And a tax software will allow me to do an amendment even if the original filed return wasn't using it's software?
Reply With Quote Quick reply to this message
 
Old 02-26-2017, 12:17 PM
 
Location: SoCal
20,160 posts, read 12,689,885 times
Reputation: 16993
You have to fill out the form by hand then. I had to for 1040x because somehow it was not clear to me, the instruction from TurboTax. You just need to redo schedule D. Then redo 1040x. Don't forget state tax too.
i just did this for 2015, no tax change, just captured a loss on paper because my brokerage didn't send the correct form. Even though, I specified, no tax due, only change to schedule D so I can get better base for 2016, I got inquiries form the IRS. But I rejected their proposal for more tax, they couldn't explain it to me either on the phone, but just keep good record is my advice to you.
Reply With Quote Quick reply to this message
 
Old 02-26-2017, 12:53 PM
 
5,291 posts, read 6,118,078 times
Reputation: 5462
Quote:
Originally Posted by UntilTheNDofTimE View Post
He still has over 30k in losses to claim. My question is really "do I have to amend the 2015 return". My dad does not care about the extra $300 or so he would get back if he can just continue to claim the losses going forward. From what I've read it seems like you don't have a choice in the matter and you are required to claim the carry forward every year, which would mean I'd need to amend the 2015 return.
Failing to use a tax loss carry forward in one particular year does not have an effect on its use in future years. The loss is not reduced. Since your dad does not owe tax in 2015, an amended tax return for that year is not necessary. You can always consult a tax professional if you feel we've been steering you the wrong direction.
Reply With Quote Quick reply to this message
 
Old 02-26-2017, 01:32 PM
 
Location: SoCal
20,160 posts, read 12,689,885 times
Reputation: 16993
Quote:
Originally Posted by Wells5 View Post
Failing to use a tax loss carry forward in one particular year does not have an effect on its use in future years. The loss is not reduced. Since your dad does not owe tax in 2015, an amended tax return for that year is not necessary. You can always consult a tax professional if you feel we've been steering you the wrong direction.
But where is it record, everything is on paper. I think it's not a good advice.
Reply With Quote Quick reply to this message
 
Old 02-26-2017, 08:20 PM
 
12,022 posts, read 11,505,520 times
Reputation: 11136
Quote:
Originally Posted by UntilTheNDofTimE View Post
I've been doing my dads taxes for the past few years except in 2015 since he had a complicated situation he needed to see his tax guy (who did his taxes previous to me).

When my dad gave me his 2016 info I realized his accountant (who has missed a lot of things in the past mind you) did not use his Capital loss carry forward (he has about 30k in loses from 2008). Do we need to amend the return? Should I just forget about it and continue suit with the 3k deduction this year?

I was reading turbo tax and it said that the Capital loss carry forward has to be used before a personal exemption so the 2015 return is incorrect. Although the amendment would result in a bigger refund.

Thanks.
You should amend the return.

If you don't, the IRS may catch it. It may take them some time to issue a computerized audit letter that says they found an error in 2015's return.

If it doesn't change his tax liability for 2015, you might be able to get by with filing a return for 2016 with the tax loss carryover that already assumes it's been reduced by 3,000 in 2015. It would look the same as if the 2015 return had been filed accurately.

Last edited by lchoro; 02-26-2017 at 08:29 PM..
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Investing

All times are GMT -6. The time now is 05:26 AM.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top