Replies to post #19939 on Capstone Companies Inc (CAPC)

[sbc357]

I know you carry it forward - those losses that are losses that the IRS ALLOWS you to claim.

HOWEVER, The Wash Rule says (to the best of my understanding) If you buy the stock back (a stock you are claiming a loss on) before thirty (30) days, you then forfeit all rights to claim that loss on your taxes. So, if you want to claim those losses, once you sell the stock at a loss, you CANNOT buy it back for a minimum of 30 days.

The losses that you have been careful enough to NOT forfeit, can then be carrried over from one tax year to the next until they are all accounted for - which is what I believe you are talking about.

Feel free to correct anything erroneous here. I am NOT an accountant, I have just had to be informed on this by an accountant.

[sbc357]

Joelegs,
Thanks for that link - it has all the information we need. Hopefully you are right and I am wrong, but from reading it so far, I'm starting to think it gets even more complicated than even I stated.

Why do you think you can carry those losses over? Are you of the belief that they can be carried even if you buy back within the 30 day period? If so, that would be WONDERFUL - just carry them to the next year - no big problem. My accountant did not go into detail, just told me not to buy back within 30 days.
Obviously, I have not read the whole thing yet. If there is a page that states this, please direct me to it. I am going to print the pages, read it, and then put them with my tax stuff.

Thanks again - a VERY HELPFUL link.