Unformatted text preview: -If one category is a loss and the others are gains , net the loss category against the gain category with the highest tax rate. If any loss is left-over, apply the remainder to the other gain category. If more loss is still left over, you may deduct up to $3,000 of this remainder against ordinary income on your return and carryforward the rest to next year. -If two categories are losses and the other is a gain , use the short-term losses against the gain category first, then the other loss against the remaining gain. If any loss exists after netting against the gain, it is limited to $3,000 against ordinary income, carrying forward the excess to future years. -If all categories are gains , keep them separated, as different tax rates will apply....
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This note was uploaded on 12/22/2010 for the course BUSACC 1242 taught by Professor Staff during the Spring '10 term at Pittsburgh.
- Spring '10