Author Topic: cap gains deduction question  (Read 675 times)

4tify

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cap gains deduction question
« on: December 03, 2024, 05:14:21 PM »
I'm trying to do projections for ACA subsidy/Roth conversion and need help with capital gains figures.

My projected taxable income is $25k, and cap gains are as follows:

- 17,000 LT
+ 2,600 LT
+ 710 ST

I also have around -20k in carryover LT loss from previous years.

Question is: what are my LT and ST figures? +710 ST and -14,400 LT? Or do these all just zero out and can I still take the -3000 LT deduction?

Sorry if this is confusing, as I am confused :)


secondcor521

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Re: cap gains deduction question
« Reply #1 on: December 03, 2024, 05:41:16 PM »
Here's the process, and how it applies to your situation.

1.  Total all ST gains and losses including carryforward.  +710 in your case.  Schedule D line 7.

2.  Total all LT gains and losses including carryforward.  -17000 + 2600 - 20000 = -34400 in your case.  Schedule D line 15.

3.  Net ST and LT together:  -33,690 in your case.  Schedule D line 16.

4.  Since you have a loss, you can take $3000 of your $33,690 loss against ordinary income and carryforward the remainder to the next year.  Schedule D line 21.

(Because the excess loss is from LT losses, you'll probably have a $30,690 LTCL carryforward.  See the carryforward worksheet.)

4tify

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Re: cap gains deduction question
« Reply #2 on: December 04, 2024, 12:26:15 PM »
Here's the process, and how it applies to your situation.

1.  Total all ST gains and losses including carryforward.  +710 in your case.  Schedule D line 7.

2.  Total all LT gains and losses including carryforward.  -17000 + 2600 - 20000 = -34400 in your case.  Schedule D line 15.

3.  Net ST and LT together:  -33,690 in your case.  Schedule D line 16.

4.  Since you have a loss, you can take $3000 of your $33,690 loss against ordinary income and carryforward the remainder to the next year.  Schedule D line 21.

(Because the excess loss is from LT losses, you'll probably have a $30,690 LTCL carryforward.  See the carryforward worksheet.)

thanks @secondcor521 ! very helpful.