Quote:
Originally Posted by Ducay
The loss can also be carried forward against gains for up to 7 years.
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Not true. Capital losses can be carried forward indefinitely to be used against future capital gains.
When shares (identical property) are sold, you use the average cost in calculating gains and losses. For example, if you bought one share at $1 and one share at $1.20 and later sold one share, your cost for this calculation is $1.10.
If the OP has any specific questions, feel free to PM me.
Edit: I see someone has already pointed out the error.
I think my example will answer Red Sky's question immediately above.