Happy Thanksgiving! PLEASE NOTE:
CalCPA offices will be closed Thursday, Nov. 25 and Friday, Nov. 26, for Thanksgiving.CalCPA’s Customer Success team—and chat—will be back on Monday, Nov. 29.
Redirecting to cart, please wait...
You have items(s) in your cart.
If I have a capital loss in 2012 of $100,000 and then in 2013 I have a capital gain of $100,000, do I pay tax on the capital gain in 2013 or would tax be $0?
If you have a capital loss of $100,000 in 2012, and that is your total net loss, then $3,000 of that loss would be used to offset your ordinary income in 2012. So $97,000 of your loss would be carried forward to 2013. If you have no other income, then the full $100,000 loss would be carried forward. So assuming that you had some ordinary income in 2012, the carry forward of $97,000 would offset all of your 2013 gain of $100,000 except for $3,000.
If the gain in 2013 was for a sale in which the holding period was less than one year, you would pay tax on this $3,000 gain at your ordinary income rates. If the holding period was greater than a year, you would pay tax on this gain at capital gain rates.
Rob Seltzer is principal of Robert Seltzer, CPA, PFS, in Beverly Hills. You can reach him at (310) 278-9944(310) 278-9944.
Have a question for a CPA. Ask it here.