<What did you mean when you referred to the above " $ 3,000 limit for losses "?>
The IRS will only let you offset $3,000 of capital losses against ordinary income
For example, if at the end of the year, you have gains of $10,000 but losses of $19,000, you can offset all of the gains by the $19,000 leaving a net loss of $9,000. However, you can only deduct the first $3,000 of losses per year against ordinary income and carry the remaining $6,000 forward. So, for '97 you could take a $3,000 loss and you could use the $6,000 loss for future years - again with a max. loss of $3,000 per year. |
