Quote from: nzhu on July 08, 2017, 04:04:00 PM

Quote from: EXtremeAEX on July 08, 2017, 05:34:27 AM

Not sure if I understood it correctly. It just means you only pay less this year, but you have to pay again next year. For example you have a capital loss of $4000, and so you pay $1000 instead, but you would have to pay that $3000 again next year. (they probably wouldnt give everyone a free $3000 deduction every year Tongue

)

Check this site that explains this also, may help you to understand.

http://loopholelewy.com/loopholelewy/13-capital-gains-losses/capital-gains-losses-03-capital-losses-ordinary-losses.htm

But that link you gave me said "If a net capital loss exceeds $3,000, the excess must be carried over to the following year and is included in the computation of capital gains and losses of that year. If the loss is not used up in the following year, it may be carried to future years until it is used up."

So you agree with me that the $3000/yr until it is all gone sound waaaaay TOO GOOD TO BE TRUE....and yet these websites are saying it. By that logic, even if you lose 30K in trading, you can still get it all back in only 10 short years....which is ridiculous!!! Or 300K in a lifetime of 100 years....meaning if you start at a young age, you've got 200-300K in your lifetime to play and not suffer any loses over your lifetime. Like WTF! That sounds crazy!!!

I need someone who did suffer these loses to confirm that it is true.

OR...I was thinking does it work like this:
Your income for that year is 10,000. You lose 3000, and so you only pay tax on that remaining $7000?
Then this is the expected terrible return i expected which makes more sense.
if your tax is 15% that year, then you only get back a couple hundred

You don't get the money back, you can deduct $3,000 from your income every year and pay taxes on $3,000 less income every year until you have no additional capital losses.