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I sold a stock a few years ago for a loss of $12k. The following year after i sold it, i claimed on my tax for $3k loss as that was the limit according to law. My question is that still the case per year? Also, i didn't claim it on my tax subsequently after that year. Now i want to continue to claim another $3k since i still have another $9k to claim. Any info on what i can or can't do? Thanks.
I sold a stock a few years ago for a loss of $12k. The following year after i sold it, i claimed on my tax for $3k loss as that was the limit according to law. My question is that still the case per year? Also, i didn't claim it on my tax subsequently after that year. Now i want to continue to claim another $3k since i still have another $9k to claim. Any info on what i can or can't do? Thanks.
Yes, that is still the case this year. You are allowed to roll that carryover loss over year-to-year taking $3k each year in losses (think it's Sch. D pg. 2). If you had a gain of $9k this year (which if you did, feel free to share how you made money in the current market! lol), you would be able to use the entire $9k loss carryover to offset it making your capital gains = 0.
no. i have a loss of 9k from the dot com era still. i haven't taken advantage of the 3k loss /year for a few years now. that is why i was asking. i only used $3k to write off, so now i have another $9k to deduct/write off sort of speak. as far as the current market, i am just buying some stocks now, but holding off on some cause i think it will bottom out even more. thanks for replying.
I believe you're supposed to use those carryforward losses against gains/income each and every year--it's not optional. The fact that you didn't, I don't know how that would affect you now. You should probably talk to a tax pro.
Buckeye in SC is saying if--IF--you were fortunate enough to have a $9k gain this year, you could then use your entire $9k loss against it and therefore pay no tax on your gain. IOW, carryforward losses are first used to offset capital gains (as much as needed), and THEN applied against other income (up to $3k).
I am a day trader and have $54000.00 in losses...I hear I can claim them all in one year because I am a day trader and this is my job. Where do I put them?
I sold a stock a few years ago for a loss of $12k. The following year after i sold it, i claimed on my tax for $3k loss as that was the limit according to law. My question is that still the case per year? Also, i didn't claim it on my tax subsequently after that year. Now i want to continue to claim another $3k since i still have another $9k to claim. Any info on what i can or can't do? Thanks.
JL:
The IRS only gives you so many years to ammend a previous return.
If you used the first $3000 in say, 2002 and have not used the rest since then I think you are out of luck. Check with the IRS rules on capital loss carry forward. Here is a link. Filing an Amended Tax Return Using IRS Form 1040X
So, it looks like you can not get the extra refund (or pay the less tax) you would have received, had you claimed the $3000 each year.
Give them a call and see. If you had no stock gains or losses in 2003-2009, I'd give you a remote chance that you were not required to file Schedule D and you may be able to use your carry forward loss. I give you a 1% chance on that and only the IRS can tell you.
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radvises:
My schedule D and D1 was 30 pages last year. They go on your schedule D and D-1. If you, by some impossible miracle, had $3000 in gains each year, you'd not have to pay taxes on them for 18 years ($54,000 / $3000 = 18)
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