Transfer of loss - form 4797

"Andrea Morgan" wrote

I don't think any of us want to be second guessing your CPA. If there is a loss carry forward, you want to carry it forward every year, and you want to use it to off-set income if you can.

my 2012 but my CPA wants to transfer a $42,000 loss from my 2011 return and apply it to 2012. This was from a short sale totalling $156,000, of which a portion was used to offset all of my income for 2011. The $42,000 is what remains. My question is can I transfer this loss forward to 2012 if I'm not a company or corporation. I don't want to jeopardize my offer in compromise in any way but it would definitely be to my benefit to use the transfer if it's legitimate. Any help would be most appreciated.

Capital losses are carried forward as long the loss was not on personal use property. I.e., a loss on your residence or second home (vacation home). Those losses are disallowed.