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

Is it true there is a minimum tax loss you can take - regardless

Resolved Question:

Is it true there is a minimum tax loss you can take - regardless of capital income?
Submitted: 6 years ago.
Category: Tax
Expert:  Merlo replied 6 years ago.

Hello JA Customer,

 

Any capital losses that you have must be used to first offset any capital gains. This is the same rule regardless of how much income you have for the year.

 

If your capital losses exceed your capital gains, then you are allowed to claim an additional loss amount of $3,000 over that amount that can be applied to your other ordinary income. Any remaining losses are carried forward for use on your future years returns.

 

If this was helpful please press the Accept button.

 

Thank you JA Customer

 

 

Customer: replied 6 years ago.
What if your gains are higher than your losses? Can all your losses be applied up to that amount (the gain) even if they exceed $3000.00?
Expert:  Merlo replied 6 years ago.

Hello again Lorraine,

 

Yes, absolutely. You should use all of your gains to first offset your losses and then you only pay tax on the gains you have which exceed your total capital losses. The $3,000 does not even come in to play in that type of situation.

 

If this was helpful please press the Accept button. Positive feedback is also appreciated.

 

Thank you Lorraine

 

 

Merlo and 4 other Tax Specialists are ready to help you

Related Tax Questions