J

#### joe

Best way to ask is by scenario.

If lost 20,000 in 2000 you may deduct 3000 against ordinary

income then you carry over 17,000. into 2001 then again

deduct $3000 in 2001 carry over 14,000 into 2002 then

again 11000 into 2003.

Now say I have a gain of 10,000 from a stock sale long term

or short in 2003 (Keep in mind I have 11,000 carry over in

2003)

Will any tax on 10,000 profit be canceled out due to the

11,000 carry over lost? Or am I only allowed to apply 3000

from my carry over and apply it to my gain and pay tax on

only 7,000?

I Believe I will not have to pay tax on this gain due to my

loss carryover and also still subtract 3000 from my ordinary

income even though after I subtract my lost from my gain I

only have 1000 left.

I believe deducting from ordinary income is separate from

carry over lost vs gain in stocks. Am I correct?

is it true - If lost 20000 in year 2001 and gained 20000 in

2002 no tax will be due ????

Thanks in advance

If lost 20,000 in 2000 you may deduct 3000 against ordinary

income then you carry over 17,000. into 2001 then again

deduct $3000 in 2001 carry over 14,000 into 2002 then

again 11000 into 2003.

Now say I have a gain of 10,000 from a stock sale long term

or short in 2003 (Keep in mind I have 11,000 carry over in

2003)

Will any tax on 10,000 profit be canceled out due to the

11,000 carry over lost? Or am I only allowed to apply 3000

from my carry over and apply it to my gain and pay tax on

only 7,000?

I Believe I will not have to pay tax on this gain due to my

loss carryover and also still subtract 3000 from my ordinary

income even though after I subtract my lost from my gain I

only have 1000 left.

I believe deducting from ordinary income is separate from

carry over lost vs gain in stocks. Am I correct?

is it true - If lost 20000 in year 2001 and gained 20000 in

2002 no tax will be due ????

Thanks in advance

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