How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Merlo Your Own Question
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
9573734
Type Your Tax Question Here...
Merlo is online now
A new question is answered every 9 seconds

I have more carryover losses than I will ever be able to claim

This answer was rated:

I have more carryover losses than I will ever be able to claim in my lifetime if I can only claim $3000 per year. How can I realize any tax savings from this carryover fiasco?
Hello ridr,

Unfortunately, the only way you can utilize more than $3,000 per year in carryover losses, would be in a year that you also had capital gains.

Hopefully in future years you will have some gains from either selling stocks or property, and you could then use as much of the loss as you have to offset those gains.

Otherwise, if you have no capital gains in any given year, you are limited to the $3,000 per year write off.

If this was helpful please press the Accept button.

Thank you ridr.

Customer: replied 7 years ago.
And I'm guessing then that no amount of income from a retirement check, or Social Security or IRAs can ever qualify to reduce my tax burden----$3000 a year is it?
If I never lose another cent, I'll die with many thousands of dollars of losses never credited
Hello again ndr,

Unfortunately, it is often the case that a taxpayer with a large loss ends up never being able to claim all of it in his lifetime.

The types of income you just mentioned such as social security and IRA's are all ordinary income, and the most you can offset of ordinary income is the $3,000 per year limit. In order to use anything over and above that amount, it must be used to offset capital gain income, such as the sale of stocks or property.

If this was helpful please press the Accept button.

Thank you again ridr, and let me know if you have more questions.
Merlo and 3 other Tax Specialists are ready to help you