Posting Capital Losses

[Chief]

As you knowing the limit on taking capital losses if $3000 per year. If a client has the amount of losses that could not used in his lifetime would you list all of them? Why or why not?

[Lion]

My software carries them forward, so I don't have to list them. Or course, I want them on the return. What if he sells a stock tomorrow at a huge gain, or his second home, or whatever investment? You don't want to forget about the loss that can save him taxes.

[Roberts]

As you knowing the limit on taking capital losses if $3000 per year. If a client has the amount of losses that could not used in his lifetime would you list all of them? Why or why not?

List them how? You list them once when realized and then the software rolls forward a single figure each year.
I'd certainly enter it. How do you know they won't win the lottery or inherit a sum they don't know about?
What if they change the capital loss rule to a higher figure?

[DaveO]

I had a client with large capital loss carryforwards leave because he thought we charged too much. He went to one of the big storefront providers. They couldn't get the loss input without listing each occurance and the year. He called from there asking for a report that would summarize the losses. I told him it would have to be manually compiled and all he had to do was provide the preparer the last 10 years of his returns and they could easily figure it out in a couple of hours. He was back the next year and didn't complain about his fees again.

[Lion]

I worked for a large storefront provider. We entered one number for a capital loss carryforward if a new client. Now, NOLs are listed by year as they get used chronologically. But, not capital losses.