I would really appreciate if anyone could advice me on this. I had capital loss of $36,948 in stock market during
1999-2001 period out of that I only claimed $3000 once. Can I claim the remaining amount as capital loss carrrover in my 2006 tax return. Thanks in advanceRaj.
A capital loss carryover continues until used up, or you die. Use of the carryover (even if you had no capital gains to offset) should be considered EVERY year after the year of loss, and a new capital loss carryover worksheet completed if not used up.
This makes no sense without further explanation. Each year stands by itself. If the bottom line of Schedule D is a loss greater than $3,000, $3,000 goes on the 1040 with the balance carried forward to the next year's Schedule D, where the process begins again. Depending on what other income there was, it's possible that no loss actually gets used in a year, but the only way to tell is to do the returns.
-- Phil Marti Clarksburg, MD
wrote
Why only once? You can use up-to $3000 of losses to off-set ordinary income each year. But to your question, you can carry the losses forward for as many years as it takes to use them up.
-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net
snipped-for-privacy@gmail.com posted:
No. Assuming you filed annually, you should have been carrying over the loss and deducting $3,000 of it each year. If you didn't file annually, you still have to deduct $3,000 for each intervening tax year. In your case, if you filed for 2001, and the $36,948 remainder stems from then, you would deduct an additional $3,000 for 2002, ;03, '04 and
2005 -- so $24,948 would still be available as carryover to the 2006 tax year. Enter that on the work sheet and it will take off another $3,000 for 2006 ... and also provide a report showing $21,948 carryover remaining (assuming you have no other capital gains or losses for the year). That report should be stapled to the front of your copy of the 2006 filing record, as a reminder to you (or your preparer) when it comes time to file for 2007. Bill
The loss you didn't take should have flowed to the "Federal Carryover Worksheet" a 'keep for your records' (do not file) form. Each year, you then get to take the loss that will negate your cap gains, and then up to $3000 of ordinary income. So the answer is 'yes' with a qualification. Do you now have gains to offset? If you never have gains, you take $3000/ year till it's (the carried loss) is used up. JOE JoeTaxpayer.com
No. You don't get to pick and choose when you take the capital loss carryover.
*Every year* you have to enter the remaining carryover on your Schedule D and include it in that year's Sched D calculations just as if it were a "fresh" loss taken that year. Then you fill out the loss carryover worksheet to see how much loss remains for the next year. You very likely need to amend your 2000-2005 tax returns, since it sounds like you did them wrong.-- Rich Carreiro snipped-for-privacy@animato.arlington.ma.us
you need to prepare the capital loss carryover worksheet (for each year) ___________________________________
-----> real address on hobokeni or hobokenx
Assuming no other capital gains or losses during the intervening years, you get to claim 3000 for 2006, AND you may go back and amend 2003, 2004 and 2005 for possible refunds. ChEAr$, Harlan Lunsford, EA n LA
You need to file amended returns for every year from the first after you had a loss carryover until now. You only get back the taxes for the last 3, but you need the others to show the amount of carryover still available. The carryover that was used in 2002 (for 2001 tax year) is lost if not taken then. For years after that you can still get a refund. Seth
Maybe; maybe not. A worksheet should be completed for each year of course, but if any intervening year had no other income against which to offset the 3000, then no reduction is used and the full amount is carried over to next year. Thus if he had NO income for 2002 and 2003, the carryover is from 2001 to 2004 in toto. ChEAr$, Harlan Lunsford, EA n LA
Let me further explain it. The last return I filed was in
2001, in which I mentioned the capital loss carryover of $36,948. I never filed the return for the period 2002-2004, as I had no income in US during that period because I am not a citizen of US and I was back in my home country during that period of time. I came back to US in Dec 2005 again, filed the return for 2005 because I worked for 3 weeks during that year. I did not mention anything about capital loss carry over in my 2005 return because my gross income for that period was only $1,354. So now I was wondering if I could offset $3000 limit from my taxable income of 2006. I have no capital gains to offset. Any advice on how to proceed on this would be highly appreciated. Thanks Raj
Ah, all is clear. You still need to do the worksheets for intervening years and retain in your files. And for those years the capital losses are suspended, so you will effectively resume in 2006. ChEAr$, Harlan Lunsford, EA n LA
You say you are not a US citizen and did not have any income in the US between 2002 and 2005, except $1,354. You do not say what visa or residence status you do have. Are you a greencard holder? Or otherwise considered a permanent resident of the US? Did you have income in your home country during these years? If you were a US resident, you are required to file a US tax return and report ALL worldwide income. So, the amount of capital loss carryover may not be determined from the facts available. Lanny K. Williams, CPA Nawarat, Williams & Co., Ltd. Income Tax Services for Expatriate Americans
Thanks for your valuable inputs. I have filled the Form
1040; in Schedule D in Line 6 I have entered unused short-term loss of $33,948. As in 2001 return I showed the short-term loss of $36,948. 2001 return was the last return when I claimed capital loss of $3000. I didn't file the return for 2002, 2003, 2004 as during that period of time I had no income and I was non-resident alien during that period. I filed the return for 2005 but didn't file Schedule D, as my income was very less to offset i.e. $1,354. So now my question is thatBeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.