I think there was another post on this recently but I can't find it, so my apologies if this is rehashing a recent discussion.
I'm doing my son's taxes. He has about $150 in carry-forward losses
from last year.
A transaction in his account this year generated a LT gain of about
$250. His earned income for the year is about $2600. I claimed him as
My tax program used the carry-forward from last year to wipe out $150
of the gain from the year, and showed $100 capital gain on line 13 of
his 1040. He owes no Federal tax, and wouldn't even if he had the $250
in capital gains.
The worksheet in the program shows he now has no loss carry-forward.
Since the loss carry-forward did not generate any tax savings,
shouldn't the loss carry over to next year?
- posted 9 years ago