The Money Mustache Community

Learning, Sharing, and Teaching => Taxes => Topic started by: TheHardenedInvestor on September 07, 2018, 05:28:17 AM

Title: Capital Loss from years ago.
Post by: TheHardenedInvestor on September 07, 2018, 05:28:17 AM
I had a small capital loss (app $500) from a stock that I had from years ago in some old brokerage account that got sold ages ago. I remember that I never claimed that loss on my taxes. Can I still claim the loss to this day? It probably happened 10 years ago.
Title: Re: Capital Loss from years ago.
Post by: BTDretire on September 07, 2018, 11:10:42 AM
 I doubt it, I have a Capital Loss I've been writing off since 2000.
I ask my accountant if I could not use it and wait until I was in a higher tax bracket.
 He said no, I had to use it if I have it. I still have about $25,000 to or 8 more years to write off $3,000 a year!
Title: Re: Capital Loss from years ago.
Post by: MustacheAndaHalf on September 08, 2018, 12:03:37 AM
I think you'd have to amend your taxes of 10 years ago, and apply the capital loss then - but I doubt you can amend returns over 3 years old, let alone 10 years.

"(5) Three-year time limit. You usually have three years from the date you filed your original tax return to file Form 1040X to claim a refund. You can file it within two years from the date you paid the tax, if that date is later. That means the last day for most people to file a 2012 claim for a refund is April 18, 2016 (April 19 for taxpayers in Maine and Massachusetts). See the Form 1040X instructions for special rules that apply to some claims."

https://www.irs.gov/newsroom/amending-your-tax-return-ten-tips