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Subject:   losses
Date:   Sun, 13 Oct 2002
From:   Elaine

I lost 2400 in long term stocks this year. How much can I deduct from my taxable income in 2002 when I file with the IRS?

Answer

Date:   Wed, 16 Oct 2002

Hello Elaine,

Capital losses are deductible by individuals up to the amount of capital gains plus $3,000 ($1,500 for married persons filing a separate return). Legislation has been proposed to increase the net deduction to $8,250 ($4,125 for married filing separately) for 2002, but I don't expect it to be enacted.

Good luck!

Mike Gray

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IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.