Submitted By: Ed
Answered: October 12, 2015 11:29 am

I had a capital loss of $13,500 and no capital gain. Can I carry the loss back to offset income in past years?

No, there is no carryback for capital losses. Capital losses can offset capital gains and up to $3,000 of ordinary income. Any capital loss over this limit can be carried forward indefinitely to offset future capital gains and, again, up to $3,000 of ordinary income.

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Tax Glossary

Tax deferral

Shifting income to a later year, such as where you defer taxable interest to the following year by purchasing a T-bill or savings certificate maturing after the end of the current year. Investments in qualified retirement plans provide tax deferral.

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