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RD
RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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I have a capital gains loss carryover (Schedule D) of $408000

Customer Question

I have a capital gains loss carryover (Schedule D) of $408000 for 2009. I have gains in years 2007 and 2006. 2008 is even. Can this loss be carried back to 2007, 2006 and refiled to recoup some of these tax dollars paid, or, has new legislation been accepted that would not allow me to do this? I would very much like to get some of these monies back if possible. I do not know how to make it clearer what I would like to do. Thank you.
Submitted: 6 years ago.
Category: Tax
Expert:  RD replied 6 years ago.

RD :

Hi

RD :

Thank you for using Justanswer.

RD :

Capital losses cannot be carried back. These losses will be claimed against capital gains for the current year and any excess loss will offset upto $3000 of your other income. Balance loss will be carried forward for offset in future.

RD :

Corporations follow a different rule. Corporations with capital losses must first be carried back to each of the three preceding years, if possible. Any capital losses that cannot be applied against capital gains from the three previous years can then be applied against capital gains in the 5 succeeding tax years.

RD :

Let me know if you have any question.


 


Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.