Tax Tip #225

Ralph Loggia • December 10, 2024

Capital Losses

As a general rule, a capital loss exists when a security is sold for less than its purchase price. Realized capital losses can be netted against capital gains in the same year. If the losses are greater than the gains, a maximum capital loss of $3,000 can be deducted in that current year from other types of income on the individual’s income tax return. The excess is carried forward to the following year. 


Question: When do capital loss carryforwards expire? 

Answer: When the individual expires.

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