Long term carryover question


S

saz

Hi,
I'm sure someone on this group can answer this.

If I have a Long term loss carryover (carry forward) from last year,
does that only offset Stock or Mutual Fund sales gain that I earn and
not mutual fund capital gains?

For example, this year I have a lot of mutual fund long term capital
gains. But I have had almost no sales this year of funds or stocks.
Does that mean that I can't use the long term loss carryover from last
year?

Thanks in advance,
Steve
 
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P

Paul Thomas, CPA

saz said:
If I have a Long term loss carryover (carry forward) from last year,
does that only offset Stock or Mutual Fund sales gain that I earn and
not mutual fund capital gains?

For example, this year I have a lot of mutual fund long term capital
gains. But I have had almost no sales this year of funds or stocks.
Does that mean that I can't use the long term loss carryover from last
year?



Your capital loss carryforward will offset the capital gains doled out by
the mutual fund company, as well as against any gains from sales you make,
and, up to $3000 against ordinary income.
 
S

saz

Pau,
Let me try to understand what you're saying. I really appreciate that
help. When you refer to long term capital gains, does that mean that
the carryover can apply to mutual fund long term capital gains (the
ones the funds throw off even though you don't actually sell) as well
as long term gains from actual asset (Stocks, Funds, etc.) sales.
Correct?

Let me give you an example and why I'm confused. First of all, I've
been using Turbotax for over 10 years. Two years ago I had a very large
long term loss that I've been carrying over. It was over $80,000
(ouch!). Last year, when I filed my taxes using Turbotax as I always
do, I had some mutual fund long term gains (though I didn't sell any)
totalling around $25,000. These appear on a 1099 from the mutual fund
company. Shouldn't my carryover (actually carryforward) have dropped to
about $65,000? It didn't.

Any thoughts?
Thanks again,
Steve
----
 
P

Paul Thomas, CPA

saz said:
Let me try to understand what you're saying. I really appreciate that
help. When you refer to long term capital gains, does that mean that
the carryover can apply to mutual fund long term capital gains (the
ones the funds throw off even though you don't actually sell) as well
as long term gains from actual asset (Stocks, Funds, etc.) sales.
Correct?


Yes.




Let me give you an example and why I'm confused. First of all, I've
been using Turbotax for over 10 years. Two years ago I had a very large
long term loss that I've been carrying over. It was over $80,000
(ouch!). Last year, when I filed my taxes using Turbotax as I always
do, I had some mutual fund long term gains (though I didn't sell any)
totalling around $25,000. These appear on a 1099 from the mutual fund
company. Shouldn't my carryover (actually carryforward) have dropped to
about $65,000? It didn't.




Look at Line 13 (I believe it is) on Schedule D to see if your capital gains
distributions are there. If so, then they were off-set by some of your
capital loss carry forward. If you don't see your capital gains
distributions on that line, then you entered something wrong.


Other than that, check to see if your loss carry forward is input correctly.
 
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A

Arthur Kamlet

Pau,
Let me try to understand what you're saying. I really appreciate that
help. When you refer to long term capital gains, does that mean that
the carryover can apply to mutual fund long term capital gains (the
ones the funds throw off even though you don't actually sell) as well
as long term gains from actual asset (Stocks, Funds, etc.) sales.
Correct?

Let me give you an example and why I'm confused. First of all, I've
been using Turbotax for over 10 years. Two years ago I had a very large
long term loss that I've been carrying over. It was over $80,000
(ouch!). Last year, when I filed my taxes using Turbotax as I always
do, I had some mutual fund long term gains (though I didn't sell any)
totalling around $25,000. These appear on a 1099 from the mutual fund
company. Shouldn't my carryover (actually carryforward) have dropped to
about $65,000? It didn't.

Any thoughts?
Thanks again,
Steve

Agree.





It sounds as if it isn;t carrying forward the capital loss or
isn't dealing withthe capital gains distgributions correctly.



Do you have any other schedule D items, or is it just the loss
carryover and the capital gains distributions?


Do the loss carryover and the Capital gains distributions both
show up on the schedule D?



And does the loss reduce the distributions?
 

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