How much of my capital losses can I claim as a tax deduction?

October 25, 2002

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?


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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