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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: C who wrote (358)	12/30/1997 11:02:00 AM
From: Rutgers	Read Replies (3) \| Respond to of 5810

<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.