WSB needs to start making noise about increasing this and adding an inflation factor going forward. It started as a benefit deduction and has remained the same amount, severely reducing its benefit.
We all realize the time value of money but not lawmakers. They know crime, pay for play and THEY don’t lose money on stocks coincidentally so no attention to this matter.
Thank you for today’s attention to this matter from all WSB’s. This will help those in most need of it. Spread the word since my influence is limited by rules.
Loss carryforward needs to increase. $3k since 1978 !!!
byu/paguido intax
Posted by paguido
8 Comments
I honestly think there are a lot more important changes that need to be made. But to each their own.
$10k LCF with an income phase-out makes sense.
Regardless of political affiliation I think we should all agree that ANY number in the tax code not indexed to inflation is a poor choice. How about the 100-150k active real estate threshold? NIIT? Social security taxation phaseouts from the 80’s?
Or, on the flip side, make it $0 so the public doesn’t subsidize your investment decisions
An easy way to avoid losing money on investments is to not gamble on meme stocks.
If you are continually running into the capital gain loss carryforward rules as an average person then you need to seriously reevaluate your investment “strategy”.
Good luck. Congress does this stuff on purpose to meet their own rules for budget purposes or reconciliation purposes or to message a top line number. And surely in some tax legislation writers minds, why add an inflation factor when this can be automatic tax increase every year? They let that happen with AMT for quite some time.
As others have pointed out there are other bigger fish to fry in the code. And solve the problem yourself by taking a big capital gain that will use this capital loss.
I would increase the cap gains tax long before ever talking about loss write offs
You do realize that the loss carry OVER is all the losses except for the -$3,000 deducted from income on Form 1040 line 7a. Right? And that the carryovers in future years are ALSO reduced by any Capital Gains you have in any future years.