friar1610
Thinks s/he gets paid by the post
- Joined
- Jun 27, 2002
- Messages
- 1,641
I looked on the IRS web site to try to find the answer to the following question. I kinda, sorta got an answer but it was explicit enough for my comfort.
Situation: I sold several mutual funds at losses during 2009 and re-bought another fund. My purpose was less to tax-loss harvest than it was to clean up my portfolio by eliminating a few funds with relatively small balances and reinvesting in TSM which is the core of my portfolio anyway. (And they were not wash sales.) Capital gains distributions for 2009 will not come anywhere close to using up the losses I harvested. I understand that after I apply the loss to CGs/CG distributions, I can use $3000 of the loss as a write-off against ordinary income, but I will still have a hefty sum to carry over to 2010.
In a separate move, I am considering reducing my equity exposure and one fund I own has a LTCG roughly equal to the amount of the loss I won't be able to use in 2009. My understanding is that if I sell the fund with the gain in 2010, I can use all the remaining (unused) loss from 2009 against it. But I haven't been able to find that anywhere in black and white and I want to be absolutely certain there is no limitation on the amount of the loss I can use each year if I carry it over as opposed to having the loss and the offsetting gains in the same tax year.
Can anyone help? Thanks.
Situation: I sold several mutual funds at losses during 2009 and re-bought another fund. My purpose was less to tax-loss harvest than it was to clean up my portfolio by eliminating a few funds with relatively small balances and reinvesting in TSM which is the core of my portfolio anyway. (And they were not wash sales.) Capital gains distributions for 2009 will not come anywhere close to using up the losses I harvested. I understand that after I apply the loss to CGs/CG distributions, I can use $3000 of the loss as a write-off against ordinary income, but I will still have a hefty sum to carry over to 2010.
In a separate move, I am considering reducing my equity exposure and one fund I own has a LTCG roughly equal to the amount of the loss I won't be able to use in 2009. My understanding is that if I sell the fund with the gain in 2010, I can use all the remaining (unused) loss from 2009 against it. But I haven't been able to find that anywhere in black and white and I want to be absolutely certain there is no limitation on the amount of the loss I can use each year if I carry it over as opposed to having the loss and the offsetting gains in the same tax year.
Can anyone help? Thanks.