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Am I able to deduct the income from my capital gain.........

for expenses on my personal...
Am I able to deduct the income from my capital gain......... for expenses on my personal losses, like an attorney fees, expert witness etc?
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Answered in 5 minutes by:
1/18/2018
Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 14,873
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Hi. My name’s Lane …

I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, to clients on three continents, since 1986.

Bear with me a moment while I type up my response. Then if you have further questions we can go from there

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Customer reply replied 7 months ago
whoa...........u r a gem Lane.....
Customer reply replied 7 months ago
i am humbled ...just have MD PhD.......

Yes, although capital losses can only be used to offset capital gains.

...

ORDINARY losses reduce taxable income (thereby reducing the effect of capital gains)

...

Ordinary losses are used against ANY income (there are some limitations on passive losses)

...

But capital losses must first be netted against capital gains then only a small allowance of 3000 against ordinary income ... the rest of the capital loss must be carried forward.

...

ORDINARY losses are much more versatile.

...

heh! Yep only stole 10 years of my life :0)

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Customer reply replied 7 months ago
lucky u.......22 of mine.......
i have opposite........i have a capital gain..........fine i will pay taxes.........but my personal/business losses- 150 th overshot my person/business income - only 50 th.......so can deduct 100 th? can i carry over the next year, when my income (hopefully) will be
higher?
tnx

No, the 100K business loss will flow either to line 17 or line 13 (depending on the business entity) as a negative number.

...

the capital gain ends up on line 13

...

the -100 will reduce AGI, where the capital gain will increase it.

...

Once you get your taxable income to zero THEN you can carry forward as what's called a NOL (Net Operating Loss)

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Customer reply replied 7 months ago
god..........its complicated......tnx
i will speak to my lady........Happy New Year..........u r the best

Yep, just another one of those seemingly funny rules

...

Ordinary loss? good (usable against all income, capital gains and otherwise)

...

Capital loss good (sometimes, usable against ONLY capital gains, and a small amount of ordinary income)

...

You're very welcome ... Your positive rating … (by using those the stars or faces on your screen, and then clicking “submit”) …is thanks enough!

That's the only way I'll be compensated by JustAnswer for the work here

...

Thank you,

Lane

Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 14,873
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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