Carry Over Loss


A

anand

For the tax year 2004 I had capital loss of $6400. When
filing my 2005 taxes I forgot to carry over the $6400.

Can I carry over that loss in my 2006 tax filing, or do I
have to amend my 2005 and then file 2006 taxes.

Pls. note that for year 2005 I had a capital loss of $600
which I had included in the 2005 filing.

Thanks
 
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P

Phil Marti

anand said:
For the tax year 2004 I had capital loss of $6400. When
filing my 2005 taxes I forgot to carry over the $6400.
$3,000 of your 2004 went on your 2004 return with the
balance carried to 2005. (I can't tell from your statements
how much the loss was since you show the same amount for the
loss and the carryover.)
Can I carry over that loss in my 2006 tax filing, or do I
have to amend my 2005 and then file 2006 taxes.
You have to amend 2005. You don't have to wait for your
refund from that filing to prepare you 2006, just get the
carryover right on the 2006 return.
 
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R

Rich Carreiro

anand said:
For the tax year 2004 I had capital loss of $6400. When
filing my 2005 taxes I forgot to carry over the $6400.

Can I carry over that loss in my 2006 tax filing
No.

, or do I have to amend my 2005 and then file 2006 taxes.
Yes.
 
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B

Bill

(e-mail address removed) (anand) posted:
For the tax year 2004 I had capital loss of
$6400. When filing my 2005 taxes I forgot to
carry over the $6400.
Can I carry over that loss in my 2006 tax filing,
or do I have to amend my 2005 and then file
2006 taxes.
Pls. note that for year 2005 I had a capital loss
of $600 which I had included in the 2005 filing.
You ought to amend your 2005 return, and include a worksheet
calculation incorporating the $6400 carryover. That should
result in some additional tax savings for 2005 ... and,
based on the $600 loss you already had, there ought to be a
net carryover of $4,000 remaining for 2006.

Assuming you had no other capital events in 2006, the
worksheet would lead you to enter a $3,000 loss on line 13,
and direct you to carryover the remaining $1,000 for 2007.

It is my practice to staple the "capital loss carryover"
worksheet directly to the front of the file copy of the
return ... so when you (or your preparer) refer to the
previous year's return, you will immediately be reminded to
enter that carryover in the approriate area.

Bill
 
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R

rick++

Amending 2005 could save you additional taxes. $3000 of the
carryover offsets earned income or interest/dividend income
which can have a higher tax rate than some kinds of capital
gains.

That is not considering the intangible cost of the time for
the extra paperwork.
 
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