Capital loss writeoff, how many years?

[KlondikeGeoff]

I know you can write off up to $3,000 each year on a capital loss (such as a loss on the sale of stocks), but I can’t recall for how many years you can do this.

Is there a limit, or can you keep taking off the $3K until the thing is all used up.

I use a computer tax program and e-file, so they don’t send me the instruction booklet any more where I could look it up.

[KittenKat]

IRS Publication 550 should tell you what you want to know.

[suranyi]

@KlondikeGeoff

I know you can write off up to $3,000 each year on a capital loss (such as a loss on the sale of stocks), but I can’t recall for how many years you can do this.

Is there a limit, or can you keep taking off the $3K until the thing is all used up.

I use a computer tax program and e-file, so they don’t send me the instruction booklet any more where I could look it up.

Every year you match up gains vs. losses and if you have losses over $3,000, you carry over the excess to the next year. That process can continue indefinitely.

Ed

[KlondikeGeoff]

@suranyi

Every year you match up gains vs. losses and if you have losses over $3,000, you carry over the excess to the next year. That process can continue indefinitely.Ed

Hooray! Well, not “hooray” that I have a big loss, but that I can keep carrying it over until it’s gone (or I’m gone).

Thanks for the info.

[DrDeth]

You can also offset gains with your loss, of course.