Capital Gains and Losses
Capital Gains Tax Questions? Ask a Tax Advisor for Answers ASAP
Hello and thank you for your question.
In 2013, you had a large capital loss carryover from the prior year showing (line 14). This amount was subtracted from your 2013 long-term capital gains to arrive at net long-term capital gain on line 15.
In 2014, you had no capital loss carryover from 2013 (and line 14 was $0) because in 2013 you ended up with net capital gains so there was no loss to carry forward.
Note that capital losses in excess of capital gains must be carried forward to future years with the exception that $3,000 per year can be deducted. If you look at your 2012 return, you will find that you deducted $3,000 on page 1 of your Form 1040 and were forced to carry forward to 2013 $33,055 in capital losses. Because you had more than $33,055 in capital gains during 2013, you were able to use up all of your capital loss carryover from 2012. You again had some capital gains in 2014, but no longer had any loss carryover, so line 16 for 2014 is much larger than line 16 from 2013.
I hope this helps.
Removing money from your investment account is not a taxable event. Gains, losses, interest, and dividends are, and they all will impact your eligibility to receive a premium tax credit from the Marketplace. Investment income can be difficult to predict, especially with mutual funds, so you should monitor your investments' performance throughout the year and update your projected income on the Marketplace's website to ensure you are not receiving too much or too little of a credit.
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