MFS and Capital Loss Carryover

[Redneck]

Have a new client that has been filing MFS for three years up until 2006 and has been deducting 1500.00 in Capital Losses. The client is now single and still has losses of 50000.00. Can the client deduct 3000.00 begining in year 2006

[GIMoe]

Capital Loss Carryover

Have a new client that has been filing MFS for three years up until 2006 and has been deducting 1500.00 in Capital Losses. The client is now single and still has losses of 50000.00. Can the client deduct 3000.00 begining in year 2006

Filing status Single is eligible for $3000 Capital Loss Carryover. MFS is the only filing status limited to 1500. (This, of course, presumes that total capital loss exceeds these limits) -- See TTB Page 6-10

If capital losses are more than capital gains, the difference must be deducted even if there is no ordinary income to offset it. The annual limit on the amount of capital
loss that can be deduced is $3,000 ($1,500 MFS).

A capital loss is carried over if either of the following situations applies.
• The net loss on line 16, Schedule D, is more than $3,000 ($1,500 MFS).
• The amount shown on line 41, Form 1040, (taxable income without the deduction for exemptions), is less than zero. Use the Capital Loss Carryover Worksheet—Lines 6 and 14 in Tab 16 to determine the amount of capital loss carryover.