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Tax Law (Questions About Taxes)/2012 federal tax form 1040: Gain-Loss

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Question
During year 2008 I purchased $100K of Oppenheimer Rochester Muni (ORNAX).

On 03-05-2012 this was sold as follows:
Cost Basis:  125,636.99
Proceeds:    105,977.34
Gain/Loss:   -19,659.65

Can the loss of $19,659.65 be applied to the 2012 tax return.
If yes, how is this done.

thanks
Abraham

Answer
Abraham,

Thanks for your question.

The loss is a long term capital loss and can be deducted using Form 8949 and Schedule D.  You can use the loss to offset capital gains plus $3,000.  Any unused loss carries over indefinitely until used up.

Hope this helps.

John Stancil, CPA  

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John Stancil, CPA

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I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

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I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

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DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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