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Old 03-30-2009, 12:56 AM
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Can capital losses less than $3,000 be carried over?

Hello -

I have a capital loss from a series of trades amounting to $1,450. This year, I do not have any capital gains and have only a few hundred dollars in taxes to offset, which means that I used a very small percentage of my capital loss as a deduction for this year.

So my question is if the 'unused' amount of my capital loss can be carried over to the following year to offset capital gains or to be used as a tax deduction.

Thanks



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Old 04-05-2011, 08:41 AM
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Yes, you can .. even if your taxable income is ZERO, then the capital loss carryforward can be preserved. That is , you can continue carry over the the leftover loss to the future year, but you need to file it .



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Old 04-05-2011, 10:05 PM
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“So my question is if the 'unused' amount of my capital loss can be carried over to the following year to offset capital gains or to be used as a tax deduction.”--->As you can see, your capital loss, $1,450, is used to offset your capital gain. As long as you have a $1,450 capital loss, and a $1,450 capital gain, they will offset each other.However, if you have a $1,450 c/o capital loss and no gains next year, you can use your $1,450( up to $3,000) of the capital loss to deduct against your ordinary income. For example, assume that your ordinary income is $40,000, because of the capital loss, you will only pay tax on $38,550 of ordinary income next year. Any capital loss that is not used in the current year can be carried over indefinitely to offset future capital gains (ordinary income up to $3,000 per year).



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