IRS question

[wallyuwl]

I know this is an oil web site, but it gets a lot of traffic from a lot of different people so maybe someone will be able to help.

Long story short: I had to submit a Schedule D for my 2009 year tax return. It showed a loss of $511 in investments. The IRS was satisfied with my documentation supporting the Schedule D and I got a letter saying they consider the case closed. I don't have to pay anything else, and they aren't giving me any type of refund.

My question: Since I lost $511 in investments that year (thanks Citigroup), aren't I able to claim that as a deduction? I thought you could write off up to $3000 in losses. Is this correct? If so, anyone have the part of tax law that says this?

I called the IRS, had to wait through twenty minutes of menus to get the OPTION to talk to someone, then another fifteen minutes on hold. The guy I got hardly spoke English, and kept interrupting me. So I got nasty with him, so I don't think he was in any mood to help me. He just said I need to write them with why I think I deserve the additinoal deduction. Having the part of the tax code to put in my letter would be helpful.

Thanks for any help.

 

[javacontour]

You should be able to claim losses of up to 3000 in any given tax year. If your losses are greater than that, you can carry them over to following year(s).

I carried over net losses from Sun stock for a few years, that's how I know.

 

[javacontour]

PS, it's not a deduction, but a reduction in income. So you won't claim it as a deduction, but it will reduce your taxable income.

 

[CivicFan]

Didn't you put the capital losses in line 13 of your 1040 form to adjust your total income?

 

[Drew99GT]

http://www.irs.gov/taxtopics/tc409.html

Yes, you can deduct the capital loss. You'll need to file an amended return like JH indicated.

 

[Drew99GT]

Originally Posted By: CivicFan
Didn't you put the capital losses in line 13 of your 1040 form to adjust your total income?


I'm guessing the IRS received a 1099 in 2009, but he didn't and didn't have the information to put on his return. Happens often and sometimes triggers an audit.

 

[CivicFan]

LOL, the example in Publication 550 is for 2009 capital loss carryover.

http://www.irs.gov/publications/p550/ch04.html#en_US_publink1000250101

 

[wallyuwl]

Originally Posted By: Drew99GT
Originally Posted By: CivicFan
Didn't you put the capital losses in line 13 of your 1040 form to adjust your total income?


I'm guessing the IRS received a 1099 in 2009, but he didn't and didn't have the information to put on his return.


Yes.