I had a short term capital gain on a real estate sale in 2008 and paid the taxes.. then in 2009 paid that same home buyer $20,000 to cover a problem that developed after the sale... I have no capital gain in 2009 but do plan on having one in 2010. Can I use the $20,000 I paid out in 2009 as a carryover against my 2010 taxes instead of against my regular income in 2009? How would I go about asking the IRS for a carryover until 2010 if that is possible? Thanks for any help. Jani

You should file an amended return for tax year 2008, showing the correction to the sale price to be $20K less than what you originally reported. This will get you a refund on your '08 taxes.