depends on whether it is short term or long term. I file married filing separate return and under the rules they calculated I only lost 27000; even though I lost much more than that. My allowed deduction is 1500 per year and carries over each year.
Bill
of AZ
@
Dec 11, 2008 13:43:19 PM
ca/taxes
yes that is true I blv. (US$3,000/year loss tax break); but CAN carry over the losses to next year; buy/get Wed. Wall St. Journal & read tax column detailing that; S
s
of NJ
@
Dec 11, 2008 13:40:26 PM
Deducting investment losses
You can deduct losses (that you have realized from a sale, not losses on paper) up to the amount of capital gains you have realized from sales during the year.
If your realized losses exceed the gains you can in addition deduct up to $3,000 fron other income. Or if you have no gains then that $3,000 can be deducted from other income.
If you have realized losses in excess of the total of capital gains and $3,000 of other income then you can carry forward those realized losses and use them under the same rules next year and in years beyond until they are all utlilized.
There may be special twists when complex or specialty investments are involved but this is the general rule, especially for stocks.
Len Wiener
of DC
@
Dec 11, 2008 11:53:05 AM
DROP IN INVESTMENTS
MY INVESTMENTS HAVE DROPPED MANY THOUSANDS. IS IT TRUE I CAN'T USE MORE THAN $3,000 AS LOSSES ON MY INCOME TAX?
nicha kalanga @ Mar 11, 2009 04:21:40 AM
Bill of AZ @ Dec 11, 2008 13:43:19 PM
s of NJ @ Dec 11, 2008 13:40:26 PM
Len Wiener of DC @ Dec 11, 2008 11:53:05 AM
of CA @ Dec 11, 2008 00:46:03 AM
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