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-   -   Capital loss carryover provisions (https://www.askmehelpdesk.com/showthread.php?t=273037)

  • Oct 24, 2008, 06:21 AM
    Budster43
    Capital loss carryover provisions
    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
  • Oct 24, 2008, 08:39 AM
    AtlantaTaxExpert
    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.

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