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Question: If i sell stocks/mutual funds for a loss, how much can i deduct from taxes and how many yrs can it carry over?

(Posted by: charmed on 2008-11-20 13:54:46)

I want to sell some mutual funds/ stocks, they have taken losses. I think I can only deduct so much per year, but the unused amount can be deducted each year until I have applied all the losses. My question is, how much and for how long? IRS.gov is so confusing.

Posted by: SusieQ on 2008-11-20, 15:11:21

Judy above is correct except that you deduct the losses against any gains first - then $3000 against other income.

Posted by: Judy on 2008-11-20, 14:21:16

You can deduct $3000 per year of your loss against other income, and carry anything additional over as long as it takes to use it up.