Tax help with capital loss carryover

Quote from CReinhold:why will I end up with a L/T loss carryover next year since my current $1766 carryover + my $791.90 loss of 2008 is less than $3000? Next year, I should not have any loss carryover... correct?
More...

You currently have carryover of $1766. You are applying 2008's S/T and L/T losses of $792 against. Thus, you have $
 
Quote from CReinhold:why will I end up with a L/T loss carryover next year since my current $1766 carryover + my $791.90 loss of 2008 is less than $3000? Next year, I should not have any loss carryover... correct?
More...
You are correct. You'll be able to use up the entire amount (1766 + 792 = 2558) this year. No carryover. I forgot you had other income this year.

Jack
 
ok. still when i fill out my worksheet, i'm getting zero.

1jrd4n.jpg


line 4: 4766.36
line 5: 1906.54
line 6: 0
line 7: 4766.36
line 8: 0

line 9: 1093.46
line 10: 0
line 11: 2859.82
line 12: 2859.82
line 13: 0

clearly i have something in the wrong spot...
 
Quote from CReinhold:
line 4: 4766.36
line 5: 1906.54
line 6: 0
line 7: 4766.36
line 8: 0
line 9: 1093.46
line 10: 0
line 11: 2859.82
line 12: 2859.82
line 13: 0
clearly i have something in the wrong spot...
More...

As I said in my previous post you messed up last year on the 60/40 rule's application. The numbers you are bringing forward are therefore wrong. Redo last year's Schd D and Form 6781. It should result in something like this assuming Line 1 is $50K

1. 50000
2. 3000 (Can not be more than $3000 by rule)
3. 53000
4. 3000
5. 1906 (S/T correct amount)
6. 0
7. 3000
8. (1094)
9. 2860 (L/T correct amount)
10. 0
11. 1094
12. 1094
13. 766

That's quickly done but I think correct. If this doesn't work get an accountant to help.

Jack
 
if you are able to declare yourself as a business and have a "net opperating loss" you are able to carry that loss backward up to 3 years, and there is no limit on how much you can carryback
 
Quote from JackR:

As I said in my previous post you messed up last year on the 60/40 rule's application. The numbers you are bringing forward are therefore wrong. Redo last year's Schd D and Form 6781. It should result in something like this assuming Line 1 is $50K

1. 50000
2. 3000 (Can not be more than $3000 by rule)
3. 53000
4. 3000
5. 1906 (S/T correct amount)
6. 0
7. 3000
8. (1094)
9. 2860 (L/T correct amount)
10. 0
11. 1094
12. 1094
13. 766

That's quickly done but I think correct. If this doesn't work get an accountant to help.

Jack
More...

Ok. I did redo my 6781 and schedule D prior to doing that worksheet. what i was doing wrong was first using the max $3000 in line 4, and using the 60/40 split from that which was $1800 and $1200. Then when i re-did it, i used the full $4766 and the 60/40 split from that.

I see now that I am supposed to use the max limit of 3k on line 4 and use the 60/40 split from the full $4766, then i get the correct carryover amount. That's why i kept getting zero. Makes perfect sense now.

Excellent. I do thank everyone, especially Jack, in helping me figure this out.
 
Even tax professionals get this wrong a lot of the time. I'm using round numbers here, but I had a $30k net loss in 2011, and a $60k net gain in 2012. I interviewed an accountant who told me I could only use $3k of last year's loss to offset this year's gain. Keep in mind he was fully aware that both amounts were from the exact same instrument.

I kindly shook his hand and got out of there ASAP.
 
You must log in or register to reply here.
Back
Top