How to calculate the the "Long-Term Capital Loss Carryover" from the schedule D?

Stock Investment - Capital Gain & Loss Tax?

• I have been doing my own taxes for the past 15 years. I completed the 1040 form every year since I have been working for the same company for the past 15 years with no extra income. This year (2011 Tax), I am a little worried because I started investing in some stocks. I know that I just need to attach the Schedule D form but I want to make sure that I do it correctly. Instead of spending a hundred bucks on some software or hiring someone, I thought maybe one of you guys can walk me through on how to complete the D form. I am pretty good with tax terms so if you can just help me a little, i should be able to do this on my own. I bought about 30K worth of XXXX stock between Jan 2011 ~ April 2011. By Aug. 2011, I lost almost 1/3 of it and left with about 20K. I sold half of XXXX stock, and with the money I sold (10k), I bought and sold a few different stocks before Thanksgiving. I'm still holding on to that half of XXXX stock (about 10K) even to this date (2012). Here are my questions. It will be greatly appreciated if you can answer all of these questions with numbers labeled. Thanks!! 1) How should I calculate my loss on that XXXX stock? How much? 2) With the money I sold XXXX stock, I bought and sold ZZZZ and YYYY stocks with more losses. Should I add these losses to the XXXX loss? 3) What is this thing about Thanksgiving cut off date? 4) I heard something about "8949". What is it and how does it apply to me? 5) I don't know how to explain this, but hopefully you will understand where I am going with this. If I can only report $3000 out of my $10000 loss this year, what is going to happen to $7000 remainder? If I can use $7000 loss on the next years tax return, do I need to keep track of this remainder? I guess my question is how the IRS will know I only reported 3k loss out of 10k and I have more than 7k to report in the future. What if I buy more stock in 2012 and record losses? How are they going to be added on to the 7k. Who keeps track of my all losses besides me? If it all up to me, is there going to be a form that will show my total losses and how much was reported/unreported and what the remainder is? If I trade a lot, some mistakes will be made and I want to make sure that there is a check and balance being done by someone other than me.

• Answer:

  a new form this year is 8949 which attaches to the Sch D you will have to follow it with the sales you have, there are three choices which you need to determine which box you mark on the source of your purchase prices then when you have those done, the amount is reported on sch D