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JLcpa
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Regular

Joined: 22 Sep 2009
Online Status: Offline
Posts: 202

Posted: 22 May 2011 at 17:51 \| IP Logged

Can someone please explain the treatment of Long term capital gains & losses, and Short term capital gains and losses for individuals & corporates?

Thanks

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Jas, Jersey City, NJ
AUD- 18 Nov 2009- 86
FAR- 28 Jan 2010- 91
BEC- 26 Feb 2010- 87
REG- May 2011- 78

thechamp26
Contributor

Joined: 11 Aug 2010
Online Status: Offline
Posts: 52

Posted: 22 May 2011 at 18:44 \| IP Logged

Corporations:
Capital gains get taxed as ordinary income. There is not
a special tax rate.
Capital losses can only be used to offset capital gains.
Must be carried back 3 years and then carried forward 5
years. Can't elect to forego carryback.

Individuals:
Capital gains get taxed at capital gain rates.
Capital losses can offset ordinary income up to $3,000.
Carried forward indefinitely, no carryback.
You can net capital losses with capital gains from every
type of different category (28%, 25%, etc.) There is a
certain order to follow when doing this, though.

JLcpa
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Joined: 22 Sep 2009
Online Status: Offline
Posts: 202

Posted: 23 May 2011 at 07:25 \| IP Logged

thanks!

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Jas, Jersey City, NJ
AUD- 18 Nov 2009- 86
FAR- 28 Jan 2010- 91
BEC- 26 Feb 2010- 87
REG- May 2011- 78

sethjackie
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Newbie

Joined: 29 Nov 2010
Location: United States
Online Status: Offline
Posts: 11

Posted: 25 Apr 2012 at 16:37 \| IP Logged

I am confused on this, what I read is that a Capital loss *can* be carried back 3 years and forward 5. I am getting conflicting information on whether or not there is *no* election to forego a carryback (so you MUST carryback the capital loss 3 years, its not a choice) I see different results here, online, and in my books.

Can anyone explain which one is the actual rule.

musicamor04
Regular
Regular

Joined: 05 Oct 2011
Location: United States
Online Status: Offline
Posts: 155

Posted: 26 Apr 2012 at 09:00 \| IP Logged

@sethjackie...you will rarely be tested at this granular of a level. But, to answer your question, the rule is 3/5...no requirement to carryback.

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BEC - (65, 75, lost credit re-take May 30, 2012)
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AUD - (63, 87)
REG - (70, 58, 50 69, 70, 88--FINALLY!!)

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