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Budster43
Oct 24, 2008, 06:21 AM
Is applying a capital loss carryover to a current years capital gain optional?

Deails:
I have a capital loss carryover of say $5000.
In 2007 I have a capital gain of $2000.
I know I could offset that gain with some of my capital loss carryover.
BUT... suppose I am already paying zero in tax and I don't need to reduce the current capital gain amount.
Can I retain the whole $5000 capital loss carryover to future years?

Thanks in advance... Budster43

AtlantaTaxExpert
Oct 24, 2008, 08:39 AM
Sorry, you MUST offset the $2,000 with the $5,000 carryover, reducing the carryover to $3,000, which is then applied to "other income" if you have any income.

If there is no other income, then the $3,000 loss gets carried over to future years.