Accepted Answer

Greetings,

 

Yes, you can use the capital loss that was more than $3,000 from last year to offset your current year capital gain.

 

See http://www.irs.gov/publications/p550/ch04.html#en_US_publink100010729 for all the details.

"...you can carry over the unused part to the next year and treat it as if you had incurred it in that next year. If part of the loss is still unused, you can carry it over to later years until it is completely used up. ...When you carry over a loss, it remains long term or short term. A long-term capital loss you carry over to the next tax year will reduce that year's long-term capital gains before it reduces that year's short-term capital gains. "

 

There is a separate line on 2009 Form 1040 (Schedule D) for listing the carry over short term loss and the carryover long term loss. Line 5 and Line 14 were where the carryover losses are listed on the 2009 form.

 

I hope this helps for claiming your capital loss carryover.

 

Best wishes.

 

 

Expert:	John Gordos EA
Pos. Feedback:	99.8 %
Accepts:
Answered:	11/5/2009

Enrolled Agent

I have prepared individual, trust, partnership, and corporate taxes since 1987.