On an after-filed return, you're able to amend up to 7 years after to claim the worthless security loss.
Got a case of a year 2004 worthless security of about $ 4500\ for MFJ return..
I amend the 2004 return - but it brings only a small refund ($ 75) because there was already a $ 2800 loss on the original return filed.
So I carry over the balance to 2005 where I'm able to offset the small capital gain already reported and get a $ 3000 loss for year - with a remaining carryover to 2006.
In 2006 - there was ALREADY a $ 3000 loss with a $ 3400 carryover to 2007.
My question is - in order to get the remaining carryover - must I amend (no change) 2006, or can I go directly into amending 2007?
I might not even do an amended 2007 - because the difference is $ 595 and not worth amending for such a small amount - but I'm just curious as to what the proper procedure actually is.
Oh yeah - the security involved was only the wife's. Husband passed away at age 101 this past 4/1 (no fooling) - and am dealing with the son who's now handling the parents' tax matters.
Got a case of a year 2004 worthless security of about $ 4500\ for MFJ return..
I amend the 2004 return - but it brings only a small refund ($ 75) because there was already a $ 2800 loss on the original return filed.
So I carry over the balance to 2005 where I'm able to offset the small capital gain already reported and get a $ 3000 loss for year - with a remaining carryover to 2006.
In 2006 - there was ALREADY a $ 3000 loss with a $ 3400 carryover to 2007.
My question is - in order to get the remaining carryover - must I amend (no change) 2006, or can I go directly into amending 2007?
I might not even do an amended 2007 - because the difference is $ 595 and not worth amending for such a small amount - but I'm just curious as to what the proper procedure actually is.
Oh yeah - the security involved was only the wife's. Husband passed away at age 101 this past 4/1 (no fooling) - and am dealing with the son who's now handling the parents' tax matters.
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