My wife and I have capital losses in excess of $250,000 from the sale of stocks. Now, we've started a new successful business. Are we limited to just $3000 of our losses offsetting our self employment income each year? Thanks.

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Originally Posted by Andyrose

My wife and I have capital losses in excess of $250,000 from the sale of stocks. Now, we've started a new successful business. Are we limited to just $3000 of our losses offsetting our self employment income each year? Thanks.

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What kind of stock are you talking about? Are you talking about public corporations? Is this qualified small business stock -- from a corporation that you began, perhaps?

This is regular stock, such as IBM, Apple computer, etc. We took a huge hit in 2001 and have never recovered our losses.

Sorry, the business income is self-employment income, NOT capital gains. There is NO offset.