Assuming a Residual Capital Loss Carryover balance with no capital losses to report, one can generally take -$3000 against income. PRC apparently wants to adjust this yearly amount based on inflation setting. On the AGI detail page, I see the Maximum reportable loss column stay at $3000 but the Reportable Capital Gains/Losses column is decreasing in magnitude each year. The Residual Capital Loss Carryover column shows available losses. I am trying to understand if this is intentional and the the reasoning behind it or if something else is happening.
James,
The $3000 value is actually adjusted for inflation: it's always $3000 and you can verify that by looking at the Reportable Capital Gains/Losses column in terms of future dollars rather than today's dollars. Does that make sense?
Stuart
Stuart
Yes it does make sense. I was a bit confused as the standard deduction and this value were not moving in a similar manner. PRC seems to be correct as apparently the IRS has indexed one but not the other.
