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Taxes: Forex Losses on year (over $3k), profit next year ?

I have Forex losses this year greater than the $3,000 maximum I can writeoff. If I were to make back some of the gains the next year, would I have to pay taxes on that even though I was still in the red?

For instance:
Year 1: Lose $20k - Write off $3k
Year 2: Gain $10k - Write off gains??

Thanks!

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2 Responses to “Taxes: Forex Losses on year (over $3k), profit next year ?”

  1. When you have a loss on schedule D and it carries forward to the following year, it reinvents itself. So, yes, you carry $17K forward and the full $10K gain can be totally absorbed, leaving you with another $3 loss and $4k to carry forward.

  2. You can only carry over 3k a year unless the rules changes. So the 20 k and loses will only absorb 3k of gains next year.

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