Capital Gains and Losses
Questions and comments about tax rules for buying and selling stocks, mutual funds, real estate and other assets.
Can total amount of previous years capitol losses be used in a year of large cap gains??
Posted by: provlima, June 20, 2017 01:34PM
I have been carrying a large capitol loss carryover from previous years of which I was limited to using 3k a year.

This year I made a substantial gain on the sale of stock. When I file my 2017 return next year will I be able to use more than the 3k loss carryover to offset my capitol gain? Thanks for your help

Re: Can total amount of previous years capitol losses be used in a year of large cap gains??
Posted by: Snargle, June 20, 2017 02:01PM
"...will I be able to use more than the $3k loss carryover"? Yes.

"Capitol" refers to the building with a dome on top, "Capital" gains and losses go on your tax return.

Re: Can total amount of previous years capitol losses be used in a year of large cap gains??
Posted by: kaneohe, June 20, 2017 04:08PM
You can do a dummy run on Sch D to see how things work
[www.irs.gov]

Re: Can total amount of previous years capitol losses be used in a year of large cap gains??
Posted by: triad, June 20, 2017 07:27PM
Let's say your carryover is $10K and you have a gain of $17K.

Your NET gain will be $7K and all of your loss carryover will be used up.

Re: Can total amount of previous years capitol losses be used in a year of large cap gains??
Posted by: Snargle, June 21, 2017 10:49PM
What the law says is that capital losses will be allowed (i.e., can be deducted) only to the extent of the gains from such sales or exchanges (meaning capital gains), plus (if such losses exceed such gains) the lesser of $3,000 ($1,500 in the case of a married individual filing a separate return), or the excess of such losses over such gains. This includes both the current year's capital losses, and also any capital losses that are "carried over" into the current year from a prior year.



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