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Zero Percent Tax Rate for Capital Gains
Old 05-11-2011, 10:54 PM   #1
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Zero Percent Tax Rate for Capital Gains

I am in the 15 per cent federal tax bracket and have long term capital loss carryovers from previous years. If I sell some stock with a long term capital gain does the long term loss carryover kick in to offset the gain or am I taxed at 0 percent up to the max of the 15 per cent tax bracket? Thanks......At Last
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Old 05-12-2011, 04:44 AM   #2
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The gains are taken they are offset by the carryover amount. If gains are greater than the carryovers the excess gain amount is taxed at the capital gain tax rate.
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Old 05-12-2011, 04:49 AM   #3
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The carryforward looks to be 'use it or lose it'. According to Pub 550

When you figure the amount of any capital loss carryover to the next year, you must take the current year's allowable deduction into account, whether or not you claimed it and whether or not you filed a return for the current year.
So you can choose not to take the current year's deduction, but the amount of losses you can carryforward is reduced as if you had taken the deduction.
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Old 05-12-2011, 06:58 AM   #4
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see line 8 and line 14 on Sch D
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