Get 1999 Instructions 1040 (schedule D). Instructions For Schedule D, Capital Gains And Losses

You can then deduct $3,000 of your losses against your income each year, although the limit is $1,500 if you're married and filing separate tax returns. If your capital losses are even greater than the $3,000 limit, you can claim the additional losses in the future.

Use Schedule D (Form 1040) to report the following: The sale or exchange of a capital asset not reported on another form or schedule. Gains from involuntary conversions (other than from casualty or theft) of capital assets not held for business or profit.

Schedule D also requires information on any capital loss carry-over you have from earlier tax years on line 14, as well as the amount of capital gains distributions you earned on your investments.

Capital Gain Distributions Instead, they are included on Form 1099-DIV as ordinary divi- dends. Enter on Schedule D, line 13, the to- tal capital gain distributions paid to you during the year, regardless of how long you held your investment. This amount is shown in box 2a of Form 1099-DIV.

Schedule D, line 21 requires that up to $3000 ($1500 for married filing separate) of a taxpayer's combined net short-term and long-term capital loss be reported on Form 1040, line 7 without regard to whether it is used in its entirety in the current year.

If your capital losses exceed your capital gains, the amount of the excess loss that you can claim to lower your income is the lesser of $3,000 ($1,500 if married filing separately) or your total net loss shown on line 16 of Schedule D (Form 1040), Capital Gains and Losses.

If you don't have capital gains to offset the capital loss, you can use a capital loss as an offset to ordinary income, up to $3,000 per year. If you have more than $3,000, it will be carried forward to future tax years."