You currently have carryover of $1766. You are applying 2008's S/T and L/T losses of $792 against. Thus, you have $
You are correct. You'll be able to use up the entire amount (1766 + 792 = 2558) this year. No carryover. I forgot you had other income this year. Jack
ok. still when i fill out my worksheet, i'm getting zero. line 4: 4766.36 line 5: 1906.54 line 6: 0 line 7: 4766.36 line 8: 0 line 9: 1093.46 line 10: 0 line 11: 2859.82 line 12: 2859.82 line 13: 0 clearly i have something in the wrong spot...
As I said in my previous post you messed up last year on the 60/40 rule's application. The numbers you are bringing forward are therefore wrong. Redo last year's Schd D and Form 6781. It should result in something like this assuming Line 1 is $50K 1. 50000 2. 3000 (Can not be more than $3000 by rule) 3. 53000 4. 3000 5. 1906 (S/T correct amount) 6. 0 7. 3000 8. (1094) 9. 2860 (L/T correct amount) 10. 0 11. 1094 12. 1094 13. 766 That's quickly done but I think correct. If this doesn't work get an accountant to help. Jack
if you are able to declare yourself as a business and have a "net opperating loss" you are able to carry that loss backward up to 3 years, and there is no limit on how much you can carryback
Ok. I did redo my 6781 and schedule D prior to doing that worksheet. what i was doing wrong was first using the max $3000 in line 4, and using the 60/40 split from that which was $1800 and $1200. Then when i re-did it, i used the full $4766 and the 60/40 split from that. I see now that I am supposed to use the max limit of 3k on line 4 and use the 60/40 split from the full $4766, then i get the correct carryover amount. That's why i kept getting zero. Makes perfect sense now. Excellent. I do thank everyone, especially Jack, in helping me figure this out.
I have used TaxAct for years, free for Federal. I prefer the downloaded version and do not e-file. I would e-file with the IRS if they allowed that, but they require that I go through an intermediary. I have more regard for my financial privacy than that. http://www.taxact.com/taxes-online/free-online-tax.asp?s=STD
Even tax professionals get this wrong a lot of the time. I'm using round numbers here, but I had a $30k net loss in 2011, and a $60k net gain in 2012. I interviewed an accountant who told me I could only use $3k of last year's loss to offset this year's gain. Keep in mind he was fully aware that both amounts were from the exact same instrument. I kindly shook his hand and got out of there ASAP.