Is there any time limit for carrying over capital losses from prior years to future gains? Hypothetical example: Can you use capital loses from year 1 against year 5 gains as long as a loses still exist after being counted against capital gains for the years inbetween 1 and 5.
Example: Lossed 100k year 1
Gained 10k year 2 carry 90k year1 to year 3 offset to 0
Gained 10k year 3 carry 80k year 1 to year 4 offset to 0
Gained 10k year 4 carry 70k year 1 to year 5 offset to 0
Gained 70k year 5 Losses from year 1 offset Gains for 0
In the example above i left the 3k income exemption off intentionally for simplicity sake.
Can you do the above, or will a loss expire?
Does the same apply for Wash Sale except minus the income deduction?
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Capital loss carryovers continue until you use them up or DIE whichever comes first.
And wash sales will continue until you stop re buying the same stock that is causing the wash sale to kick in ... the basis adjustment for the wash is forever or until you sell the security (and not re buy it) or DIE (when your beneficiaries get the stepped up basis).
Capital loss carryovers continue until you use them up or DIE whichever comes first.
And wash sales will continue until you stop re buying the same stock that is causing the wash sale to kick in ... the basis adjustment for the wash is forever or until you sell the security (and not re buy it) or DIE (when your beneficiaries get the stepped up basis).
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