7 Ways Hard Times Can Cut Your Taxes

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I am in DRC

nicha kalanga 4:21AM March 11, 2009

depends on whether it is short term or long term. I file married filing separate return and under the rules they calculated I only lost 27000; even though I lost much more than that. My allowed deduction is 1500 per year and carries over each year.

Bill of AZ 1:43PM December 11, 2008

yes that is true I blv. (US$3,000/year loss tax break); but CAN carry over the losses to next year; buy/get Wed. Wall St. Journal & read tax column detailing that; S

s of NJ 1:40PM December 11, 2008

You can deduct losses (that you have realized from a sale, not losses on paper) up to the amount of capital gains you have realized from sales during the year.
If your realized losses exceed the gains you can in addition deduct up to $3,000 fron other income. Or if you have no gains then that $3,000 can be deducted from other income.
If you have realized losses in excess of the total of capital gains and $3,000 of other income then you can carry forward those realized losses and use them under the same rules next year and in years beyond until they are all utlilized.
There may be special twists when complex or specialty investments are involved but this is the general rule, especially for stocks.

Len Wiener of DC 11:53AM December 11, 2008