Tax Question

Discussion in 'Taxes and Accounting' started by sps_45, Mar 13, 2006.

  1. sps_45


    I bought some stock in 1997, sold it for a loss in 2004, but never deducted the loss. Can I deduct the losses on my return this year? I don't have a 1099 for 2005 with these sales on it (since they were made in 2004).
  2. JackR


    You cannot carry if forward to 2005. I'd suggest that you recompute your 2004 taxes adding the loss transaction to your Schedule D and then file a 1040X for 2004.

  3. you would probably need to file an amended return for 2004.
  4. nkhoi

    nkhoi Moderator

    amended return for 2004 and carry forward the remaining if the loss > 3K limit.
  5. meaning you can't deduct more than 3K of loss against your ordinary income each year...but if you had more than that in gains in '04 you can deduct that amount from your loss from the stock (short gain vs short; long gain vs long...etc)