QUESTION DETAIL
Related User
Votes
Two years ago, I lost $30,000 in the stock market. I know that you are limited to a $3,000 a yr write-off, but this yr I made $18,000. Do I have to pay tax on the $18,000 or does it get deducted from my $3,000 loss?
ANSWER
The BIDaWIZ Team's Answer:
The capital loss amount is carried foward, year after year, until the capital loss
is fully utilized, in subsequent tax years. Thus, if you have an $18K capital gain, for the
current tax year, you may offset it, by the $30K capital loss carryfoward amount.
The transaction is reported on Schedule D, of your Form 1040.