Using capital loss carryovers

First of all, it's technically NOT a credit. It is a reduction (deduction) of your income. If you look on Schedule D it will all be explained. You can offset all the carryover if you have matching gain in this tax year. If the loss exceeds the gain, only $3000 can be taken, the rest carries over.

I'm using TT Deluxe desktop.

I know that if one has capital loss carryovers, one can get a $3,000 tax credit. But, if you take the tax credit, are you still allowed to use the capital loss carryovers to offset this year's capital gains?

Where would I check to see if TurboTax has done that?

Thanks.

Schedule D, Lines 14 & 15 ... to see the reduction in your Cap Loss Carryforward.

Form 1040, Line 13 ... to see the $3,000

db

danbrown wrote in news: snipped-for-privacy@googlegroups.com:

Alternatively, you can look at the Cap Loss Carry Forward smart worksheet (and also Cap Loss Carry Over worksheet if you have unused losses from prior years).

scott s. .

Hi, Jeff.

As Scott said, there's a BIG difference between a credit and a deduction.

For someone whose top income is taxed at 20%, a $3,000 deduction - such as a capital loss carryover - might save him $600. But a $3,000 credit - if fact in his return allowed him to use it all - would save him a full $3,000.

A deduction reduces INCOME, after which we apply the tax rate to find the tax. And THEN we apply any credit we might have to reduce the TAX, dollar for dollar.

I know the details of the tax code have changed a lot since I retired over

RC

-- -- R. C. White, CPA San Marcos, TX (Retired. No longer licensed to practice public accounting.) snipped-for-privacy@grandecom.net Microsoft Windows MVP (2002-2010) (Using Quicken Deluxe 2014 R 6 and Windows Live Mail in Win8.1 x64)

I'm using TT Deluxe desktop.

I know that if one has capital loss carryovers, one can get a $3,000 tax credit. But, if you take the tax credit, are you still allowed to use the capital loss carryovers to offset this year's capital gains?

Where would I check to see if TurboTax has done that?

Thanks.

Thank you all.

TurboTax is working correctly. I just got hurt by the new tax laws for

Thanks everybody.

I'm curious - Where and how exactly did you get hurt compared to previous years tax schedules ??

I thought the only place was at the higher end - maybe $400k ?

Don't know. I'm just working in TT and I am just middle class.

I've talked to friends who are also just middle class who have shared their shock at what their tax bill is for this year. One who calculates his taxes ahead of time (I think using last year's TT) to ensure he pays enough in the estimated payments told me than when he calculated his current taxes using last year's rules he would have been due a large refund. Instead he is facing a huge additional tax check to pay using this year's rules as implemented in TT.

I think we've been sold a bale of goods. Have you done your taxes for

Don't know. I'm just working in TT and I am just middle class.

I've talked to friends who are also just middle class who have shared their shock at what their tax bill is for this year. One who calculates his taxes ahead of time (I think using last year's TT) to ensure he pays enough in the estimated payments told me than when he calculated his current taxes using last year's rules he would have been due a large refund. Instead he is facing a huge additional tax check to pay using this year's rules as implemented in TT.

I think we've been sold a bale of goods. Have you done your taxes for

--- here's some info on the new IRS Form 8960 -----

The IRS finally released its eagerly awaited final instructions for Form

Starting this filing season, Sec. 1411(a)(1) imposes a tax equal to 3.8% of the lesser of an individual's net investment income for the tax year or the excess (if any) of the individual's modified adjusted gross income for the tax year over a threshold amount. The threshold amounts are $250,000 for married taxpayers filing jointly and surviving spouses, $125,000 for married taxpayers filing separately, and $200,000 for other taxpayers. The tax also applies to estates and trusts, with different threshold amounts.

On Form 8960, taxpayers calculate total investment income and total deductions and modifications (such as investment interest expense and state taxes) to arrive at net investment income. The form provides separate tax calculations for individuals and for trusts and estates. Individuals report the net investment income tax on line 60 of Form 1040; trusts and estates will report it on Schedule G, line 4, of Form 1041.

------------ and the Medicare Tax update for 2013 -------------

New additional Medicare payroll tax Beginning in 2013, the employee share of the hospital insurance (HI), or Medicare, portion of the Federal Insurance Contributions Act (FICA) payroll tax will increase by 0.9% (from 1.45% to 2.35%) for high-wage earners. Will you be affected? The tax applies to the extent that your wages exceed $200,000 ($250,000 in combined wages if you're married and file a joint federal income tax return, $125,000 if you're married and file separately)

BTW - both of these kick in at the $250k for the MFJ type of filing... SO - if you are not at $250k for a Married Filing Jointly - then these new "high earner" taxes do not apply...

Thank you (I think) for all the bad news.

The personal exemptions changes and AMT don't help either.

No longer pays to be successful (or have the stock market shoot up).

" snipped-for-privacy@nospam.invalid" wrote in news:lg71rj$opb$ snipped-for-privacy@dont-email.me:

I've been hit by AMT when too much of gross income was from cap gains.

scott s. .