Capital Loss Carryovers


R

roggo

In 2006 I had a capital loss carry over of $7000.
In 2007 my taxable income was low enough that I had no filing
requirement, Is the loss carry over that I can use in 2008 $7000 or
$4000? ($4000 being the $7000 minus $3000 being applied against income
in 2007 even though I did't need to file) In other words do I use a
minimum of $3000 of the capital loss carryover every subsequent year
whether I need to or not?
 
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A

Arthur Kamlet

In 2006 I had a capital loss carry over of $7000.
In 2007 my taxable income was low enough that I had no filing
requirement, Is the loss carry over that I can use in 2008 $7000 or
$4000? ($4000 being the $7000 minus $3000 being applied against income
in 2007 even though I did't need to file) In other words do I use a
minimum of $3000 of the capital loss carryover every subsequent year
whether I need to or not?

Even if you had too litle income to file, you might or might not have used
up some of your capital loss.

Fill out a return, no need to file it, and see how much, if any, of the
capital loss carryover you used up for 2007.

From just the information given, the answer is "It Depends." Try it
and see how much your carryover is.
 
R

roggo

Fill out a return, no need to file it, and see how much, if any, of the
capital loss carryover you used up for 2007.
OK. Here goes. Single age 60
Interest $1000
Qual Dividend $1000
Pension $6000
Social $25000
AGI $8000
Taxable Income after SD and Exempt $0
Tax $0

Am I correct that I did't 'need' any of my loss carryover for 2007 and
therefor still have the full $7000 available for 2008 and beyond?
Thank you.
 
A

Arthur Kamlet

OK. Here goes. Single age 60
Interest $1000
Qual Dividend $1000
Pension $6000
Social $25000
AGI $8000
Taxable Income after SD and Exempt $0
Tax $0

Am I correct that I did't 'need' any of my loss carryover for 2007 and
therefor still have the full $7000 available for 2008 and beyond?

No, No. No. No!


Once again. Fill out a tax return. That includes filling out the
Capital Loss Carryover Worksheet.



Otherwise why would they have such a worksheet if it can be ignored
with no effect? Answer: It can;t be casually ignored. You have to
fill it out. Then tell us the results.
 
P

Phil Marti

roggo said:
OK. Here goes. Single age 60
Interest $1000
Qual Dividend $1000
Pension $6000
Social $25000
AGI $8000
Taxable Income after SD and Exempt $0
If your AGI figure is correct you used some of your carryover. To find out
exactly how much, complete the carryover worksheet.
 
D

Don Priebe

OK. Here goes. Single age 60
With those numbers, you will use $2,550 of your $3,000 allowed loss. You
actually use your loss until your AGI less deductions (NOT COUNTING YOUR
EXEMPTIONS) goes to zero. It's too bad we don't have a good word for the
amount shown on line 41.
 
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R

Reggie

Arthur Kamlet said:
No, No. No. No!


Once again. Fill out a tax return. That includes filling out the
Capital Loss Carryover Worksheet.



Otherwise why would they have such a worksheet if it can be ignored
with no effect? Answer: It can;t be casually ignored. You have to
fill it out. Then tell us the results.

It doesn't sound like is trying to CASUALLY ignore the worksheet, he is
asking specific questions to determine if he can thoughtfully ignore it.

I think he can, see
http://www.fairmark.com/college/kidtax/minorcarryover.htm

however, for a first year under this scenario, your advice to fill out a tax
return and the worksheet is good advice, painful though it may be.


========================================= MODERATOR'S COMMENT:
As others have posted, the worksheet cannot be ignored and results
in some but not all of the annual $3,000 limit being used up.
 
R

Reggie

Don Priebe said:
With those numbers, you will use $2,550 of your $3,000 allowed loss. You
actually use your loss until your AGI less deductions (NOT COUNTING YOUR
EXEMPTIONS) goes to zero. It's too bad we don't have a good word for the
amount shown on line 41.

always best to do the calculations. I didn't have the forms handy. Kind of
a gyp. And any talk of increasing the $3000 limit may be a double edged
sword (I still vote for increasing the limit!)
 
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R

roggo

No, No. No. No!

Once again.  Fill out a tax return.  That includes filling out the
Capital Loss Carryover Worksheet.
OK, I finally got your point, sorry. It just never occurred to me to
use the loss carryover sheet since erroneously I never filled out the
Sch D to reflect the prior carryover. I now see why your initial
answer was 'it depends'
My new answer to the question is that I used $2650 in 2007 even though
I didn't file a return. I now have $4350 carryover for 2008.
Thanks for sticking with me!

========================================= MODERATOR'S COMMENT:
"By George. I think he's got it!" [H. Higgins] Good for you!
 

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