Explore the 1,000’s of tax questions answered by professionals.

Back to list


Related User


I have accumulated a lot of capital losses carried over from many years. Do I have to deduct $3,000 of capital losses against my ordinary income or can I carry it forward to future years? Also, can I net my IRA and 401(K) distribution income against capital losses?


The BIDaWIZ Team's Answer:

Per IRC Section 1212(b), you can only carry forward capital losses if they exceed your capital gains. You're suppose to use up to $3,000 against ordinary income in the current year if you benefit from it. In terms of your IRA and 401(K), it's treated as ordinary income/losses as opposed to capital gains/losses. You would not be able to net them together.

The BIDaWIZ Team



  • Currently 4.6190/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
1547 Ans.