Question:

Hi Brad, I wonder if you could lay out for me my tax options regarding a capital loss. I had bought a government bond from someone who had owned it, and on top of paying them the face value, I had to pay them the value of the interest that had accumulated up to the time I bought it. I am told that this interest I paid is a capital loss. I already understand that I can deduct this capital loss from any capital gains I encounter from any of the past three years, as well as the year the loss occurred, and any year in the future. What I am really wondering, though, is what my options are if I don't foresee having any capital gains from which to deduct the loss. Can I somehow use the loss to lower my income, or am I stuck? Thank you.

Answer:

Hello Glen, I guess you never received my e-mail response. I apologize for that. You are correct in that your loss on the bonds is a capital loss and you can only offset this loss against a capital gain. You can not offset this against other income. I am sorry to say you are stuck. However you can carry this loss forward indefinately, you may be able to use this in the future. If you have any questions e-mail brad.cross@investorsgroup.com Thanks Brad Cross

Answered By: Brad Cross

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