Ted and Marge Dean are married and always have lived in a co

Ted and Marge Dean are married and always have lived in a community property state. Ted (age 92) suffers from numerous disorders and is frequently ill, while Marge (age 70) is in good health. The Deans currently need $500,000 to meet living expenses, make debt payments, and pay Ted\'s backlog of medical expenses. They are willing to sell any one of the following assets.

The stock investments are part of the Deans\' community property, while the land is Ted\'s separate property that he inherited from his mother. If the land is not sold, Ted is considering making a gift of it to Marge.

My Question:

If the stock in Gull Corporation should be sold then the resulting $100,000 capital loss can be applied against capital gains and the excess can be deducted against regular income up to what amount per year? Note: One-half of any unused loss reminaining should either of the Deans predecease the other can be used by the survivor.

Solution

Capital Loss can be set deducted against capital gain. Remaining loss can only be deducted against other income.

Every year only $ 1500 is allowed on individual tax return, if they are filling tax return jointly then $ 3000 is Deductible.

However this undeducted loss can be carried forward for Indefinite period for individual assesses, which means it can be deducted in future tax returns.