Excess Capital Loss

What is the name of your state? Illinois

Hello,

I am in a situation where I have a large capital loss for the year (net of gains). My understanding is that the IRS allows a $3,000 loss per year. If I apply this loss to my 2007 taxes, does the excess loss over the $3,000 allowance carry over to the next and subsequent years (assuming it still outstrips any gains)?

Also is there any way to take all or a larger portion of the loss in this year?

Thanks!

Yes. Your tax pro or software should print out a worksheet detailing any carryforward short- & long-term losses for use on the 2008 return.

The IRS will let you make as much of a gain as you can stand per year, but caps your losses at $3000 per year, which may be split between long term or short term losses.

As stated, you'll get a sheet with your taxes tallying up the carryover for the following years.