Let me re-explain my position. I know about the 3,000 each year going forard but in my case in 2002 I excersised and sold for a total profit $40,000 of options. Again this shows on my pay slip and W-2. In 2002 I also day traded on the side with Etrade. I lost $70,000. Now in 2003 I again excersised and sold $40,000 in options. This shows up on my pay check and W-2. So 2002 I lost $70,000 in my etrade account (capitol losses) also in 2002 my company allowed me to excersise and sell $40,000 in ISO Stock. In 2003 I again excersised and sold $40,000 in company ISO stock.
The question can I spread out my capitol losses in a way where I can write off
$35,000 in 2002 and $35,000 in 2003 or do I have to write off $40,000 in 2002 and $30,000 in 2003? Understand that if I only use $35,000 write offs in 2002 it won't fully cover the $40,000 caitol gains I made on the ISO stock..
I hope I am being clear on my explanation..
2002-- capitol loss $70,000 my etrade account Can I spread this loss 1/2 for 2002 and 1/2 in 2003?
2002-- capitol gain ISO stock $40,000
2003-- capitol gain ISO stock $40,000