NEWBIES BOARD

[Garyst]

Correct. You could take the 3k deduction loss of the 5k one year and then the remaining 2k the following year or if you happened to make 2k that year you could balance it out and not pay any taxes on the 2k you made as you have the carryover 2k from the previous year to make it even.

I forget what the form # is but there is a IRS Schedule/Form that you fill out for Capital losses/gains and on there it shows the loss for the year and what you will be carrying over to the following year if your loss in excess of the 3k allowable per year.