Despite all the recent changes in tax law, one provision has remained for many years. Net capital losses are deductible on a client’s tax return, but only up to $3,000 a year. (Up to $1,500 for married taxpayers filing separate returns.)
Thus, if Al Brown has $10,000 in capital gains this year and $30,000 in losses, he’ll have a $20,000 net capital loss for 2013. However, Al’s tax deduction for 2013 will be limited to $3,000.
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