yeah but you really shouldn't confuse somebody with bad tax advice. If you don't know what you're talking about in that arena it's prob best to stay silent.Our advice is worth as much as it was paid for...
$3K Carry Loss Forward question
- Thread starter Superstar2317
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Programming saying....Drink...Code...Commit....Pick two.
Thanks but I knew that part...question was if years of no income or limited income would I lose $3,000 per year regardless which apparently is the case. IRS website says, the same thing, Capital loss carryover. If you have a total net loss on line 16 of Schedule D (Form 1040) that is more than the yearly limit on capital loss deductions, you can carry over the unused part to the next year and treat it as if you had incurred it in that next year. If part of the loss is still unused, you can carry it over to later years until it is completely used up.(https://www.irs.gov/publications/p17/ch16.html)
Yeah....like I said... I'd just file it. Its not like they'll throw you in jail. What's the worst thing that can happen? A $50 penalty? You'll save that on accounting fees.
Just use turbo tax anyway... they spoon feed all that for ya.
This should provide some good entertainment
2016, Publication 17, page 117
Capital Losses
If your capital losses are more than your capital gains, you can claim a capital loss deduction. Report the amount of the deduction on line 13 of Form 1040, in parentheses.
Limit on deduction.
Your allowable capital loss deduction, figured on Schedule D (Form 1040), is the lesser of: $3,000 ($1,500 if you are married and file a separate return), or Your total net loss as shown on line 16 of Schedule D (Form 1040). You can use your total net loss to reduce your income dollar for dollar, up to the $3,000 limit.
Capital loss carryover.
If you have a total net loss on line 16 of Schedule D (Form 1040) that is more than the yearly limit on capital loss deductions, you can carry over the unused part to the next year and treat it as if you had incurred it in that next year. If part of the loss is still un-used, you can carry it over to later years until it is completely used up.
When you figure the amount of any capital loss carryover to the next year, you must take the current year's allowable deduction into account, whether or not you claimed it and whether or not you filed a return for the current year.
When you carry over a loss, it remains long term or short term. A long-term capital loss you
carry over to the next tax year will reduce that year's long-term capital gains before it reduces that year's short-term capital gains.
2016, Publication 17, page 117
Capital Losses
If your capital losses are more than your capital gains, you can claim a capital loss deduction. Report the amount of the deduction on line 13 of Form 1040, in parentheses.
Limit on deduction.
Your allowable capital loss deduction, figured on Schedule D (Form 1040), is the lesser of: $3,000 ($1,500 if you are married and file a separate return), or Your total net loss as shown on line 16 of Schedule D (Form 1040). You can use your total net loss to reduce your income dollar for dollar, up to the $3,000 limit.
Capital loss carryover.
If you have a total net loss on line 16 of Schedule D (Form 1040) that is more than the yearly limit on capital loss deductions, you can carry over the unused part to the next year and treat it as if you had incurred it in that next year. If part of the loss is still un-used, you can carry it over to later years until it is completely used up.
When you figure the amount of any capital loss carryover to the next year, you must take the current year's allowable deduction into account, whether or not you claimed it and whether or not you filed a return for the current year.
When you carry over a loss, it remains long term or short term. A long-term capital loss you
carry over to the next tax year will reduce that year's long-term capital gains before it reduces that year's short-term capital gains.
Thanks! Don't worry I was taking it with a grain of salt...I just found it odd that I would lose it regardless if taxes were filed or not. I'll go to the grim reaper(IRS) themselves and probably ask 2 people since they seem to not know the ridiculous tax code themselves. As for bigger fish to fry VanZandt, I was audited once when in college and traded, so went back and filed, previous years. Again thanks Algofy!
Audited in college huh? lol. Good for you! You're goin places.
There's an old adage..."if its a gray area... claim it".
Guess deductions for the Tera Patrick and Jenna Jameson Home Improvement videos is a no-no!haha A think Save a VanZandt Foundation might need to be created to not pay Uncle Sam. Yeah, I think it was cause I traded $600K-$700K+ in securities, and at the time, they only got transactions not buy and sell prices. That I think came in 2010/2011. The irony is, the IRS, was interested in me, as my background is Finance, but worked for Countrywide instead. Who wouldn't want to bust "gray" collar criminals like VanZandt?lol
The $3,000 carry forward for short term losses (less than a year) has no time limitations. It can be only be used to offset income and profits but you don't lose any of it for years you have no income. I now this for a fact because I have carried forward losses spanning 15 years and my CPA advised me that I should make as much trading as possible since I had the $3,000 carry for many years to come. This is as as common as the rain and perfectly legal - with no grey areas.
http://www.fool.com/how-to-invest/p...ss-carryovers-can-cut-your-tax-bill-for-.aspx
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http://www.fool.com/how-to-invest/p...ss-carryovers-can-cut-your-tax-bill-for-.aspx
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Hahahah.
Hey I didn't coin that phrase. That comes from an ex IRS auditor that did my books for years.
You didn't get "audited"... you got a letter.... and then you had to go back and go through all those trades (you're like me... lazy when it comes to paperwork I suspect) and file. Hell I got that same letter once (2008 or 2009). I sent em back a letter that said... (I really did) ....and I quote.... "trust me...I lost it all...and I'm not in the mood to file right now. I'll get around to when I feel like it... but I owe you nothing". Never heard back from them. I did file though. But it was months later.
Comagnum I think just gave you the right answer though.
Hey I didn't coin that phrase. That comes from an ex IRS auditor that did my books for years.
You didn't get "audited"... you got a letter.... and then you had to go back and go through all those trades (you're like me... lazy when it comes to paperwork I suspect) and file. Hell I got that same letter once (2008 or 2009). I sent em back a letter that said... (I really did) ....and I quote.... "trust me...I lost it all...and I'm not in the mood to file right now. I'll get around to when I feel like it... but I owe you nothing". Never heard back from them. I did file though. But it was months later.
Comagnum I think just gave you the right answer though.