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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: Jim B who wrote (5781)	5/21/1999 5:37:00 PM
From: InOverMyHead	Respond to of 108040

Easy Jim!! Remember you are recuperating!! I had stated that I was not a tax expert. Obviously, I had misunderstood what I was told. That would not be the first time. What you are saying would make more sense. Usually with the government, SENSE has never filtered into the tax code or anywhere else for that matter. Thanks for straightening me out. I will sit here and be quiet. IOMH

To: Jim B who wrote (5781)	5/21/1999 6:54:00 PM
From: Joe Lyddon	Read Replies (3) \| Respond to of 108040

so if I lose $100,000 in 1998 and then make $10,000 in 1999 I only get to take off $3,000 and be left paying taxes on $7,000 in 1999? Jim, The way I understand it is: 1. You can lose all you want but can only deduct a maximum loss of 3,000/yr & carryover the balance. In 1998, you lost 100,000, deducted 3,000, leaving a balance of 97,000. 2. When you start making money, you can apply your carried-forward balance up-to what you made resulting NO Taxes. In 1999, you make 10,000, you offset the 10,000 from the balance forward, NO TAXES, & have a new balance of 87,000 of loss carryover. I thought the 3,000 was a deduction limit... BUT not an Income limit also. ALSO, all the money we're talking about is from the same type of source; ie, Capital Gains & Losses. (excluding your salary or other income) I sure hope I'm right... I would like to see clarified by an expert. Thank you, Joe