Interrupting Capital Loss Carry Over

denismarty · #1 (**permalink**) 04-13-2014, 01:51 AM

I have short term and long term capital loss carry over from previous tax years and will offset gains for a few more years.

Tax-software is calculating an allowable $3000 capital loss in 2013 This offsets some of our 2013 gains and related income. Normally this is fine. However 2013 is a bit different. To maximize our $7,500 tax credit for the electric car we bought we could use more income. If we DID NOT take any capital carry over loss this year could we "save" it to offset gains in the future? I am concerned that if we interrupt the carry forward loss for one year we might forfeit the remaining capital gains loses I could have used in future years?

Thanks

Wnhough · #2 (**permalink**) 04-13-2014, 02:27 AM

Quote:

Originally Posted by denismarty

Tax-software is calculating an allowable $3000 capital loss in 2013 This offsets some of our 2013 gains and related income. Normally this is fine. However 2013 is a bit different. To maximize our $7,500 tax credit for the electric car we bought we could use more income. If we DID NOT take any capital carry over loss this year could we "save" it to offset gains in the future?
Thanks

yes;indefinitely. You can carry unused capital losses forward for as long as you live. Your capital losses will offset capital gains and up to $3,000 per year (or $1,500 for MFS status) if you have other taxable income but I guess your benefciiry can’t inherit it from you.