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Is an increase in the capital loss allowance on the way?

May 08, 2009

Two senators have proposed increasing the net capital loss deduction to $10,000 for individuals, from the current $3,000. The increase is long overdue. I expect it to continue to be long overdue.

Other than the $3,000 break, individuals can only deduct capital losses to the extent of their capital gains. Unused losses carry forward indefinitely, but some taxpayers will have to outlive Noah to use their carryforwards at $3,000 per year.

More coverage:

Kay Bell
Peter Pappas
James Maule

Tags: Kay Bell.maule.Peter Pappas.

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