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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: TigerPaw who wrote (56686)	11/2/2000 1:58:22 PM
From: Frank Griffin	Respond to of 769670

Yes, there is. If you trade in equities, real property, etc you pay tax on any gain in full. However, if you have losses that exceed 3000. per year you cannot take the loss against earned income but must carry it as a forward tax loss to deduct 3000. per year until it is used up. When they seperated income into the 3 pots of earned, passive, and investment where deduction can't be moved from one area to another it was a significant tax increase for many. For example, If you make 100000. per year in earned income you pay on that minus the legal deductions. However, if you lost 100000. in the stock market that year without gains to offset it you can only deduct 3000. on that loss. So, you pay tax on 100000. even though your income was a net zero after your market losses. They share fully in your income, earned or investment or passive, but they don't share fully and immediately in your losses.