Today we hear from Charles in Novato, CA who’s got a question. “We lost $11,000 last year in the Foreign Exchange market. Can we write off some or more of this loss?“
Aw, that’s a real shame.
Yes, you can use Schedule D to report the loss.
If you have at least $8,000 in capital gains from other sources this year, you’ll be able to use all the loss.
Otherwise, you’re limited to $3,000 a year, in excess of your capital gains until all the loss is used up.
To learn more about how capital losses work, read IRS Publication 544 –
Sales and Other Dispositions of Assets
And remember, you can find answers to all kinds of questions about capital losses and all kinds of other tax issues, free. Where? Where else? At TaxMama.com[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]
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- IRS Publication 544 :: Sales and Other Dispositions of Assets
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