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What else can I help you with?
Can you use capital loss to offset dividend income?
ANSWER No capital loss can only be used to reduce any capital gain, and even in then there are rules. You can not use capital gain to offset against ordinary income. NB: Personal use capital loss can not be offset against any capital gain, losses on collectibles can only be offset against other collectibles capital gain and all "other" capital loss e.g. dividends, shares, real estate can be offset against "other" capital gain.
Can an individual use ordinary loss to offset capital gain?
Yes, an individual can use ordinary losses to offset capital gains. Specifically, if an individual has an ordinary loss from a business or other trade, it can be deducted against ordinary income, which may include capital gains. However, capital losses can only offset capital gains. If the ordinary loss exceeds capital gains, the excess can typically be used to offset ordinary income, subject to certain limitations.
Can a C-corporation use its ordinary loss to offset capital gain?
A c corps capital gain is taxed as ordinary income so why couldn't you use an NOL to offset the gain?
Can a C corporation use its ordinary loss to offset capital gain?
A c corps capital gain is taxed as ordinary income so why couldn't you use an NOL to offset the gain?
Can you use long-term capital loss to offset short-term capital gains?
can long term gains be offset by short term losses
If you have a large capital loss carry forward on your federal income tax and if you have a gain this year can you off set the whole gain up to the loss carried forward?
That is the way that it will work when you use the schedule D of the 1040 income tax return correctly and you have a large capital gain that would offset the large capital loss.
If an individual has a capital loss in 2008 can he carry it back to a 2005 capital gain tax paid?
No. But you can use $3000 of the capital loss to offset current year ordinary income and then carry the rest forward. Be sure to fill out the capital loss carryover worksheet in the Schedule D instructions before you enter a carryover from the previous year. The carryover rules are some of the most confusing for taxpayers and taxpayers cheat themselves out of a lot of carryover. Don't assume you know the right amount to carry over. Use the worksheet.
Can you revise earlier tax returns to use excess capital losses?
If you mean that you had a capital loss this year can you carry the capital loss back to a previous year, the answer is no unless you are a corporation. However, anyone except a corporation can carry a net capital loss forward to the next year after taking the mandatory up to $3000 deduction against ordinary income. Use the capital loss carryover worksheet in the next year's Schedule D instructions to learn how much you can carry over to the next year. If you mean can you revise a previous year's return to claim a capital loss you neglected to previously claim, the answer is yes. But generally, you can only claim a refund for up to three years after the original due date. This is extended to seven years for a claim resulting from worthless stock.
Can capital reserve be transferred to profit and loss account?
No, capital reserves cannot be transferred to the profit and loss account. Capital reserves are typically created from specific transactions, such as the revaluation of assets or the issuance of shares at a premium, and are intended for long-term use within the company. They are not available for distribution as dividends, unlike profits generated from normal business operations that flow into the profit and loss account.
How do you claim a capital loss?
Sale of securities, stocks and bonds use the schedule D of the 1040 tax form. Business asset use the form 4797 of the 1040 tax form.
Do capital loss carry forwards HAVE to been taken annually until eliminated or can they be postphoned until the individual has enough income to benefit?
You will have to report and use the loss carryover each year until it it is all used up. You cannot choose the year that you want to use it in.
Is selling your motorcycle considered taxable income?
If you sold it for more than you paid for it, the difference is a capital gain and taxable. (If you are in the business of selling motorcycles, it is an ordinary gain.) If the motorcycle was for personal use, you cannot claim a capital loss.
