How many years can you claim investment losses on your taxes know it 3000 a year if filing married Ex loss 30000 in 2008 claim 3000 on 2008 taxes Can you claim 3000 for 10 years are is it a limit yrs?

Answer 1

If you had a net $30,000 capital loss in 2008, you would use $3000 to offset ordinary income in 2008 and carry $27,000 forward to 2009.

In 2009, the $27,000 you carried forward would be treated as if it were a brand new capital loss that first occurred in 2009. It would be treated just as if you sold a stock in 2009 for a $27,000 loss. You would first use the full $27,000 to offset any capital gains that you had in 2009. If there was anything left after offsetting capital gains, you would use $3000 to offset ordinary income and then carry over what was left to 2010. You can keep doing this until you die. Your heirs or estate cannot use any capital loss that is left when you die.

For example, let's say you get lucky in 2010 and sell a stock for a $10,000 profit. You would use $10,000 of the $27,000 to offset the profit. Then you would use $3000 more to offset ordinary income in 2010. Then you would carry $27,000 - $10,000 - $3000 = $14,000 to 2011.