Carry over losses

[utrecht]

Assume the following:

2010: $10,000 in capital losses. $3000 is used to offset income and $7000 is carried over to 2011.

2011: $6000 in capital gains.

1) Can I access the entire $7000 in carry over losses and wipe out my $6000 in gains? Or do I only get to use $3000 of carry over losses each year?

2) If I get the entire $7000, do I also get to use the remaining $1000 in losses to offset ordinary income in 2011?

 

[Lakedog]

1) Yes, you can offset all of the gains (up to amount of losses carried over).
2) Yes, you can offset gains and also offset income with remaining losses (up to $3000).

 

[Animorph]

1) Yes, you can offset all of the gains (up to amount of losses carried over).
2) Yes, you can offset gains and also offset income with remaining losses (up to $3000).

+1

 

[braumeister]

In other words, your losses (current or carried over from previous years) will offset your gains. If you still have more losses left over after offsetting all your gains, you can then use up to $3000 of those left over losses to offset other income.

 

[utrecht]

Is this still correct?

1999...Capital Loss.....ALOT
2000...Write off $3000 against income
2001...Write off $3000 against income
2002..Write off $3000 against income
2003-2010...same thing
2011...$10000 Capital gain balanced against $10K more of losses still carried over from 1999....$3K more written off against income

 

[thefinancebuff]

Is this still correct?

1999...Capital Loss.....ALOT
2000...Write off $3000 against income
2001...Write off $3000 against income
2002..Write off $3000 against income
2003-2010...same thing
2011...$10000 Capital gain balanced against $10K more of losses still carried over from 1999....$3K more written off against income

Yes.

 

[Animorph]

Is this still correct?

1999...Capital Loss.....ALOT
2000...Write off $3000 against income
2001...Write off $3000 against income
2002..Write off $3000 against income
2003-2010...same thing
2011...$10000 Capital gain balanced against $10K more of losses still carried over from 1999....$3K more written off against income

I did run into one problem with offsetting capital gains with old losses. Short-term gains from mutual funds ended up being entered as income and were not offset by capital losses from previous years. Surprised me, but that's what Turbo Tax said.

 

[kaneohe]

I did run into one problem with offsetting capital gains with old losses. Short-term gains from mutual funds ended up being entered as income and were not offset by capital losses from previous years. Surprised me, but that's what Turbo Tax said.

You are probably talking about short term CG DISTRIBUTIONS from mutual
funds, not short term CG from sales of mutual funds? Short term CG distributions are classified as DIVIDENDS on official 1099 tax documents and
are not offset by CG losses.

 

[Animorph]

You are probably talking about short term CG DISTRIBUTIONS from mutual
funds, not short term CG from sales of mutual funds? Short term CG distributions are classified as DIVIDENDS on official 1099 tax documents and
are not offset by CG losses.

Yep, that was it.