Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 09-15-2015, 02:10 PM
Junior Member
 
Join Date: Sep 2015
Posts: 3
Capital Gains upon marriage

Hi there!

I have about 85K in LT capital losses carryforward from previous years. This year I was married, and my wife is going to be recognizing about 70k in LT capital gains for the 2015 year. If I am understanding IRS publication 536 correctly, I am not able to use my capital losses to offset her capital gains, correct? How am I supposed to keep our capital lossses/gains separate on the tax return if we file jointly, is there a worksheet available? I usually file via TaxAct, is there another service that would be better to use? Thanks so much for your help in advance!!

Ryan



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 09-15-2015, 03:15 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
I have about 85K in LT capital losses carryforward from previous years. This year I was married, and my wife is going to be recognizing about 70k in LT capital gains for the 2015 year. If I am understanding IRS publication 536 correctly, I am not able to use my capital losses to offset her capital gains, correct? ==========================>Why not? you can offset your wife's LTCG with your LTCL. As you were married in 2015 and can file your return as MFJ with your spouse, you must include both your losses and your spouse's gains when figuring your LTCL. For example, as you have a $85K LTCL but your spouse has $70K of LTCG, your loss is used up to $70K when you file a joint return. So, you still carry $15K of LTCL and then, on
Form 1040 Sch D, you also subtract $3K of your loss of $20K from ordinary income, leaving you with a carry forward of $17K indefintely .
But, if your spouse has $20K in LTCL and you have $5K in LTCG, you have a $15K LTCL . Since you can deduct $3K of the excess losses on your tax return, you can carry over the remaining $12K to your next joint return the following year.

However, you cannot use losses on assets held in your retirement plans, I,e., traditional IRAs, 401(k), or Keogh plans and other tax-deferred retirement accounts to offset your LTCG gains since Capital gains and losses in these retirement accounts are NOT taxed/offset.

How am I supposed to keep our capital lossses/gains separate on the tax return if we file jointly, is there a worksheet available? I usually file via TaxAct, is there another service that would be better to use=======>>I guess there are tens of tax return software programs to deal with LTCL carryover. You may need to contact a vendor for more info in detail on specific computer software program for LTCL C/O or etc.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 09-15-2015, 04:12 PM
Junior Member
 
Join Date: Sep 2015
Posts: 3
==========================>Why not? you can offset your wife's LTCG with your LTCL.


Are you sure about that? IRS Publication 536 states "If you and your spouse were not married to each other in all years involved in figuring NOL carrybacks and carryovers, only the spouse who had the loss can take the NOL deduction. If you file a joint return, the NOL deduction is limited to the income of that spouse."

Publication 536 (2014), Net Operating Losses (NOLs) for Individuals, Estates, and Trusts



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #4 (permalink)  
Old 09-15-2015, 04:19 PM
Junior Member
 
Join Date: Sep 2015
Posts: 3
IRS Publication 536

Change in Marital Status

If you and your spouse were not married to each other in all years involved in figuring NOL carrybacks and carryovers, only the spouse who had the loss can take the NOL deduction. If you file a joint return, the NOL deduction is limited to the income of that spouse.


Publication 536 (2014), Net Operating Losses (NOLs) for Individuals, Estates, and Trusts



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Capital gains Henny4 Capital Gains 5 04-18-2015 04:49 PM
Capital Gains. I think. Joshua Capital Gains 1 02-21-2015 01:32 AM
Capital Gain exclusion - married and multiple properties prior to marriage Kahunaben Capital Gains 1 04-22-2014 03:22 AM
What is the treatment for Capital Gains and Capital Losses in a C-Corporation? katlee C-Corporation 1 02-01-2009 05:23 PM
Capital Gains kmk21248 Capital Gains 2 05-01-2008 02:50 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.