Question on amending.

[JG EA]

Client filed last year without any basis in one of his stock sales. He had losses and carryovers to 2005. This year he sold more of that same stock and put forth more effort to find the basis.

Do I need to amend last year's return to increase the carryover to this year? There is no change in the middle column on the 1040X.

And if not, can I just increase this year's loss to offset income?

[Bill Tubbs]

amend

Personally, I would amend 2004 to ensure the IRS does disallow the additional carryforward down the road.

Bill

[Brian EA]

Client filed last year without any basis in one of his stock sales. He had losses and carryovers to 2005. This year he sold more of that same stock and put forth more effort to find the basis.

Do I need to amend last year's return to increase the carryover to this year? There is no change in the middle column on the 1040X.

And if not, can I just increase this year's loss to offset income?

Bill is correct. I just did a few of these where the 1040X becomes an info return- no balance due or refund coming. It only increases the carryover total.