In using this advantageous strategy, the private foundation (1) does not needlessly forgo the capital loss
, because the loss offset the capital gain; (2) does not pay the 2% excise tax on the recognized capital gain (which it might have to pay if the asset were sold in a year when no capital losses
are available); and (3) now has an increased tax basis in the asset sold and repurchased (which will decrease future recognizable capital gain).
WHEN THE MORTGAGOR'S basis exceeds the outstanding debt, the mortgagor's loss is a capital loss
and subject to limits imposed by IRC section 1211(b).
By selling depreciated property and donating the proceeds of the sale to charity, you can claim both a capital loss
and a charitable contribution deduction.
However, generally, it cannot carry back an NOL, a capital loss
or a general business credit from the short period.
When a GNMA or FNMA security bought at a premium is prepaid at par value, most of the difference shows up on the books as a capital loss
If the Fund has net realized capital gains at year-end, then a portion of each distribution will represent capital gains earned by the Fund but offset by capital loss
carry-forwards for book purposes.
If the capital loss
is less than $50,000 or results from a short period of at least nine months and is less than the capital loss
for a full 12-month period (beginning with the first day of the short period), the entity would be able to carry the capital loss
either forward or back under Sec.
So, if you experience a capital loss
in 2014, you can only use it to offset capital gains in 2014 or carry it back three years or forward indefinitely against capital gains (i.
Even though the Fund may realize current year capital gains, such gains may be offset, in whole or in part, by the Fund's capital loss
carryovers from prior years.
Normally, worthlessness of investments or the loss on their disposal would be a capital loss
If so, you'd have a $6,000 capital loss
, since you bought for $14,000 and sold for $8,000.
Thus, in 2001, the taxpayer had a $9,225 capital loss
for regular tax purposes and a $1,075,289 capital loss
for the AMT.