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Old 10-03-2015, 12:29 AM
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Capital loss

I purchased A mountain lot in 2005 for $22,000 as an investment. I sold it in 2014 for $14,000. On what section of the 4797 do I enter this? I know that it will flow to the schedule D and be limited to a $3000 loss. Or Form 8949?


Last edited by OmegaMan : 10-03-2015 at 12:41 AM.


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Old 10-03-2015, 12:39 AM
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Or maybe form 8949?



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Old 10-03-2015, 07:01 PM
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I purchased A mountain lot in 2005 for $22,000 as an investment. I sold it in 2014 for $14,000. On what section of the 4797 do I enter this?====>Form 4797n is NOT needed to report the LTCL; as you can see, Form 4797 is a IRS tax form used to report the sale of business property. to figure the amount of gain or loss from the sale. You need to file sch D of 1040 and form 8949 and transfer the results as an addendum to Form 1040. Form 8949 is where details of your sales and exchanges are shown, allowing you and the IRS to reconcile amounts that were reported to you and the IRS on Form 1099-B or 1099-S with the amounts you report on your return

1. I know that it will flow to the schedule D and be limited to a $3000 loss. Or Form 8949?====.Correct UNLESS you have STCG/LTCG; when your capital losses exceed your capital gains, the excess can be deducted on your tax return and used to reduce other income, such as wages, up to an annual limit of $3K as a MFJ filer, or $1.5K if you are married filing separately.
If your total net capital loss is more than the yearly limit on capital loss deductions, you can carry over the unused part to the next year (indefinitely) and treat it as if you incurred it in that next year.



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