Hi,
I lost $20,000 in capital gains in 2004 (stocks). I know I can claim $3000 every year until that amount goes down to zero. My question is, do I have to put the schedule D from 2004 that lists all the stock transactions showing that loss amount in my 2005 tax return? I had no stock transactions in 2005 but I will still claim $3000 loss from the previous year, do I need to put in my 2004 schedule D?
thanks

There are 2 lines on the Schedule D where you can put your capital loss carryforwards - one for your short-term losses you're carrying forward, and one for the long-term losses being carried forward. The IRS does not want you to write down all your transactions from 2004 on your 2005 Schedule D.

Each year, you can use those losses to offset any gains realized during the year, including capital gain distributions from your mutual funds, and then can claim uo to $3,000 in additional losses against your wages and other income. Any excess losses will be carried over to the subsequent year.

Zip Code: cpa@mdtaxes.com