Can a stock sale loss carry forward be deducting from a stock sale gain for income tax purposes?
Posted by admin in Finance Wednesday, 12 October 2011 23:12 7 Comments
If I have a stock sale loss carry forward from a previous year, and a stock sale gain for the current year, can I net the gain from the loss carry forward when determining taxable income? Or does the stock sale loss have to be from the current year as well? I am almost certain the answer is “yes”, but wanted to make sure. Thanks!
yes.
Yes, you can carry forward a loss indefinitely. You can offset a maximum of $3000 profits per year.
Yes just read and follow the schedule D instruction that are available line by line by using the http://www.irs.gov website for the schedule D and then choose instructions.
http://www.irs.gov/instructions/i1040sd/index.html
Specific Instructions
Lines 1 and 8
Column (b)—Date Acquired
Column (c)—Date Sold
Column (d)—Sales Price
Column (e)—Cost or Other Basis
Column (f)—Gain or (Loss)
Line 18
Line 19
Instructions for the Unrecaptured Section 1250 Gain Worksheet
Line 21
Capital Loss Carryover Worksheet—Lines 6 and 14
Hope that you find the above enclosed information useful. 09/15/2011
Yes. The loss is carried forward and applies as though it happened in the new year, meaning all of it can be used to offset gains. Up to $3000 of losses can be used in any year to offset other income, if any is left after wiping out the gains.
YES-up to the gain plus $3000 if your loses exceed the gains
You’re right. You enter your carry-forward loss on schedule D for this year, and net it will this year’s transactions.
your carryforward will be reported appropriately on sch D, you will report your current sales and the carryforward could cancel out any gains or could add to your carryforward
the sch D is quite clear