Discussion in 'Taxes and Accounting' started by tyler19, Dec 8, 2006.
Can I deduct my trading losses if I'm not filing trader status. The lose is about 1500.
Would you happen to know how to claim it? I usually do my own taxes but I've never filed for a loss before.
Get a tax software. It will do it automatically.
You can carry over $3K per year (if I remember correctly from 2001 - a VERY bad year! ).
It is deducted directly from gains. But you need to establish if it is short term, or long term.
And yes, tax software will do it and make it very easy.
I've always wondered what that 3k meant. For example...
2005 return -10k, claim -3k, roll -7k
2006 return +20k
-7k was carried over to 2006, now can the -7k be written off 2006 to only pay tax on 13k? Or does 3k mean only -3k off the 20k for a tax on 17k carrying the remaining -4k over to yet another year?
"7k was carried over to 2006, now can the -7k be written off 2006 to only pay tax on 13k?"
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