Capital Loss Carryovers

In 2006 I had a capital loss carry over of $7000. In 2007 my taxable income was low enough that I had no filing requirement, Is the loss carry over that I can use in 2008 $7000 or $4000? ($4000 being the $7000 minus $3000 being applied against income in 2007 even though I did't need to file) In other words do I use a minimum of $3000 of the capital loss carryover every subsequent year whether I need to or not?

Reply to
roggo
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Even if you had too litle income to file, you might or might not have used up some of your capital loss.

Fill out a return, no need to file it, and see how much, if any, of the capital loss carryover you used up for 2007.

and see how much your carryover is.

Reply to
Arthur Kamlet

OK. Here goes. Single age 60 Interest $1000 Qual Dividend $1000 Pension $6000 Social $25000 AGI $8000 Taxable Income after SD and Exempt $0 Tax $0

Am I correct that I did't 'need' any of my loss carryover for 2007 and therefor still have the full $7000 available for 2008 and beyond? Thank you.

Reply to
roggo

No, No. No. No!

Once again. Fill out a tax return. That includes filling out the Capital Loss Carryover Worksheet.

Otherwise why would they have such a worksheet if it can be ignored with no effect? Answer: It can;t be casually ignored. You have to fill it out. Then tell us the results.

Reply to
Arthur Kamlet

If your AGI figure is correct you used some of your carryover. To find out exactly how much, complete the carryover worksheet.

Reply to
Phil Marti

With those numbers, you will use $2,550 of your $3,000 allowed loss. You actually use your loss until your AGI less deductions (NOT COUNTING YOUR EXEMPTIONS) goes to zero. It's too bad we don't have a good word for the amount shown on line 41.

Reply to
Don Priebe

It doesn't sound like is trying to CASUALLY ignore the worksheet, he is asking specific questions to determine if he can thoughtfully ignore it.

I think he can, see

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however, for a first year under this scenario, your advice to fill out a tax return and the worksheet is good advice, painful though it may be.

========================================= MODERATOR'S COMMENT: As others have posted, the worksheet cannot be ignored and results in some but not all of the annual $3,000 limit being used up.

Reply to
Reggie

always best to do the calculations. I didn't have the forms handy. Kind of a gyp. And any talk of increasing the $3000 limit may be a double edged sword (I still vote for increasing the limit!)

Reply to
Reggie

OK, I finally got your point, sorry. It just never occurred to me to use the loss carryover sheet since erroneously I never filled out the Sch D to reflect the prior carryover. I now see why your initial answer was 'it depends' My new answer to the question is that I used $2650 in 2007 even though I didn't file a return. I now have $4350 carryover for 2008. Thanks for sticking with me!

========================================= MODERATOR'S COMMENT: "By George. I think he's got it!" [H. Higgins] Good for you!

Reply to
roggo

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