Forex Loss

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?“

Dear Charles,

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
http://www.irs.gov/publications/p544/index.html

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

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